Answer.

Question 20 Equation: UNTITLED Workfile: TEMP:Untitled\\ - 8 x Not yet View Proc Object Print Name Freeze Estimate Forecast Stats Resids answered Dependent Variable: INTEREST Method: Least Squares Marked out of 1 Date: 09/10/20 Time: 21:33 Sample (adjusted): 2010M03 2019M12 P Flag question Included observations: 118 after adjustments Variable Coefficient Sid. Error t-Statistic Prob 0.009823 0.024550 0.400117 0.6898 INTEREST(-1) 1.374092 0.086464 15.89212 0.0000 INTEREST(-2) 0.376696 0.086921 4.333757 0.0000 R-squared 0.992863 Mean dependent var 2.776102 Adjusted R-squared 0.992738 S.D. dependent var 1.192120 S.E. of regression 0.101586 Akaike info criterion -1.710727 Sum squared resid 1,186767 Schwarz criterion -1.640286 Log likelihood 103.9329 Hannan-Quinn criter 1.682126 F-statistic 7998.666 Durbin-Watson stat 1.886367 Prob(F-statistic) 0.000000 Equation: EQ02 Workfile: TEMP:Untitled View Proc Object Print Name Freeze Estimate Forecast Stats Resids Dependent Variable: INTEREST Method: Least Squares Date: 09/10/20 Time: 21:33 Sample (adjusted): 2010M03 2019M12 Included observations: 118 after adjustments ariable Coefficient Std. Error -Statistic Prob. C 0.149421 0.168770 -0.885355 0.3778 INTEREST(-1) 1.366098 0.087917 15.53853 0.0000 INTEREST(-2) -0.365452 0.088887 4.111411 0.000 UNEMP(-1) 0.006215 0.074166 0.083802 0.9334 UNEMP(-2) 0.017402 0.075188 0.231441 0.8174 R-squared 0.992907 Mean dependent var 2.776102 Adjusted R-squared 0.992655 S.D. dependent var 1.192120 S.E. of regression 0. 102165 Akaike info criterion -1.683011 Sum squared resid 1.179453 Schwarz criterion -1.565609 Log likelihood 104.2976 Hannan-Quinn criter -1.635342 F-statistic 3954.322 Durbin-Watson stat 1.877536 Prob(F-statistic) 0.000000 Consider two alternative models for INTEREST (interest) as above where UNEMP is the unemployment rate. What is the F-test statistic for the null hypothesis that UNEMP does not Granger-cause INTEREST? Select one O a. 4.35 O b. 5.75 O c. 2.45 O d. 0.35