Date	Gold	Silver	Nasdaq	Dow 30	Federal Funds Rate
Dec-95	387.29	5.18	1052.13	5117.12	5.602
Jan-96	398.58	5.47	1059.79	5395.30	5.565
Feb-96	404.77	5.64	1100.05	5485.62	5.225
Mar-96	396.59	5.54	1101.40	5587.14	5.314
Apr-96	392.8	5.4	1190.52	5569.08	5.224
May-96	391.9	5.36	1243.43	5643.18	5.235
Jun-96	385.09	5.16	1185.02	5654.63	5.273
Jul-96	383.2	5.05	1080.59	5528.91	5.397
Aug-96	387.4	5.13	1141.50	5616.21	5.223
Sep-96	383.1	5.02	1226.92	5882.17	5.299
Oct-96	380.92	4.93	1221.51	6029.38	5.238
Nov-96	378	4.83	1292.61	6521.70	5.311
Dec-96	368.98	4.81	1291.03	6448.27	5.295
Jan-97	355.83	4.77	1379.85	6813.09	5.255
Feb-97	346.29	5.08	1309.00	6877.74	5.186
Mar-97	353.29	5.2	1221.70	6583.48	5.386
Apr-97	344.98	4.76	1260.76	7009.00	5.507
May-97	343.28	4.74	1400.32	7331.00	5.504
Jun-97	340.64	4.74	1442.07	7672.80	5.556
Jul-97	323.97	4.37	1593.81	8222.60	5.521
Aug-97	324.19	4.51	1587.32	7622.40	5.542
Sep-97	322.53	4.72	1685.69	7945.30	5.541
Oct-97	324.67	5.03	1593.61	7442.10	5.496
Nov-97	305.53	5.11	1600.55	7823.10	5.522
Dec-97	288.79	5.81	1570.35	7908.30	5.505
Jan-98	288.82	5.88	1619.36	7906.50	5.557
Feb-98	297.8	6.79	1770.51	8545.72	5.506
Mar-98	295.76	6.22	1835.68	8799.81	5.494
Apr-98	308.18	6.35	1868.41	9063.37	5.445
May-98	299.31	5.59	1778.87	8899.95	5.489
Jun-98	291.55	5.25	1894.74	8952.02	5.559
Jul-98	292.88	5.45	1872.39	8883.29	5.536
Aug-98	284.22	5.18	1499.25	7539.07	5.547
Sep-98	288.58	4.98	1693.84	7842.62	5.512
Oct-98	296.42	4.99	1771.39	8592.10	5.071
Nov-98	294.19	4.97	1949.54	9116.55	4.826
Dec-98	290.8	4.87	2192.69	9181.43	4.684
Jan-99	287.28	5.14	2505.89	9358.83	4.633
Feb-99	287.58	5.54	2288.03	9306.58	4.765
Mar-99	286.01	5.19	2461.40	9786.16	4.809
Apr-99	282.05	5.03	2542.86	10789.04	4.736
May-99	277.27	5.26	2470.52	10559.74	4.742
Jun-99	261.12	5.02	2686.12	10970.80	4.765
Jul-99	256.3	5.17	2638.49	10655.15	4.994
Aug-99	256.42	5.25	2739.35	10829.28	5.072
Sep-99	261.89	5.19	2746.16	10336.95	5.224
Oct-99	309.61	5.38	2966.43	10729.86	5.2
Nov-99	293.17	5.13	3336.16	10877.81	5.42
Dec-99	283.63	5.16	4069.31	11497.12	5.296
Jan-00	284.62	5.19	3940.35	10940.53	5.462
Feb-00	299.55	5.23	4696.69	10128.31	5.735
Mar-00	286.18	5.06	4572.83	10921.92	5.854
Apr-00	279.44	5.04	3860.66	10733.91	6.02
May-00	274.62	4.97	3400.91	10522.33	6.268
Jun-00	284.65	4.98	3966.11	10447.89	6.528
Jul-00	281.53	4.95	3766.99	10521.98	6.545
Aug-00	273.99	4.86	4206.35	11215.10	6.497
Sep-00	273.08	4.87	3672.82	10650.92	6.517
Oct-00	269.55	4.8	3369.63	10971.14	6.509
Nov-00	265.2	4.65	2597.93	10414.49	6.514
Dec-00	271.27	4.61	2470.52	10787.99	6.402
1-Jan	265.3	4.64	2772.73	10887.36	5.976
1-Feb	261.31	4.53	2151.83	10495.28	5.494
1-Mar	262.57	4.37	1840.26	9878.78	5.311
1-Apr	260.07	4.34	2116.24	10734.97	4.802
1-May	271.76	4.4	2110.49	10911.94	4.212
1-Jun	270.24	4.34	2160.54	10502.40	3.97
1-Jul	267.14	4.23	2027.13	10522.81	3.769
1-Aug	272.13	4.17	1805.43	9949.75	3.653
1-Sep	281.72	4.32	1498.80	8847.56	3.069
1-Oct	282.44	4.37	1690.20	9075.14	2.485
1-Nov	275.11	4.09	1930.58	9851.56	2.087
1-Dec	275.17	4.33	1950.40	10021.57	1.818
2-Jan	280.94	4.49	1934.03	9920.00	1.73
2-Feb	294.75	4.39	1731.49	10106.13	1.74
2-Mar	293.56	4.5	1845.35	10403.94	1.73
2-Apr	302.26	4.55	1688.23	9946.22	1.753
2-May	313.27	4.67	1615.73	9925.25	1.751
2-Jun	321.32	4.88	1463.21	9243.26	1.75
2-Jul	313.02	4.89	1328.26	8736.59	1.729
2-Aug	309.2	4.51	1314.85	8663.50	1.743
2-Sep	318.15	4.51	1172.06	7591.93	1.751
2-Oct	315.87	4.36	1329.75	8397.03	1.755
2-Nov	318.58	4.47	1478.78	8896.09	1.336
2-Dec	333.52	4.59	1335.51	8341.63	1.238
3-Jan	354.99	4.77	1320.91	8053.81	1.235
3-Feb	357.86	4.61	1337.52	7891.08	1.262
3-Mar	340.45	4.49	1341.17	7992.13	1.253
3-Apr	327.66	4.45	1464.31	8480.09	1.258
3-May	354.5	4.68	1595.91	8850.26	1.259
3-Jun	356.25	4.49	1622.80	8985.44	1.223
3-Jul	350.12	4.75	1735.02	9233.80	1.011
3-Aug	359.66	4.96	1810.45	9415.82	1.028
3-Sep	378.08	5.12	1786.94	9275.06	1.01
3-Oct	377.68	4.94	1932.21	9801.12	1.01
3-Nov	389.62	5.14	1960.26	9782.46	0.996
3-Dec	407.15	5.57	2003.37	10453.92	0.984
4-Jan	412.86	6.24	2066.15	10488.07	0.997
4-Feb	402.92	6.42	2029.82	10583.92	1.007
4-Mar	405.26	7.18	1994.22	10357.70	1.002
4-Apr	404.64	7.08	1920.15	10225.57	1.004
4-May	383.67	5.81	1986.74	10188.45	1.004
4-Jun	391.36	5.82	2047.79	10435.48	1.026
4-Jul	397.54	6.27	1887.36	10139.71	1.264
4-Aug	399.75	6.61	1838.10	10173.92	1.429
4-Sep	404.54	6.34	1896.84	10080.27	1.605
4-Oct	419.8	7.05	1974.99	10027.47	1.761
4-Nov	438.41	7.43	2096.81	10428.02	1.932
4-Dec	442.54	7.09	2175.44	10783.01	2.156
5-Jan	424.1	6.57	2062.41	10489.94	2.279
5-Feb	422.51	7	2051.72	10766.23	2.502
5-Mar	434.37	7.22	1999.23	10503.76	2.636
5-Apr	427.68	7.04	1921.65	10192.51	2.785
5-May	421.85	6.96	2068.22	10467.48	3
5-Jun	429.58	7.25	2056.96	10274.97	3.036
5-Jul	424.17	6.96	2184.83	10640.91	3.263
5-Aug	436.89	6.96	2152.09	10481.60	3.5
5-Sep	455.06	7.11	2151.69	10568.70	3.623
5-Oct	469.23	7.62	2120.30	10440.07	3.779
5-Nov	475.03	7.8	2232.82	10805.87	4.004
5-Dec	507.96	8.56	2205.32	10717.50	4.163
6-Jan	548.14	9.1	2305.82	10864.86	4.288
6-Feb	554.27	9.47	2281.39	10993.41	4.491
6-Mar	555.36	10.3	2339.79	11109.32	4.589
6-Apr	609.22	12.57	2322.57	11367.14	4.79
6-May	673.8	13.38	2178.88	11168.31	4.94
6-Jun	595.73	10.73	2172.09	11150.22	4.991
6-Jul	631.91	11.11	2091.47	11185.68	5.235
6-Aug	629.74	12.07	2183.75	11381.15	5.247
6-Sep	599.26	11.63	2258.43	11679.07	5.255
6-Oct	584.96	11.48	2366.71	12080.73	5.245
6-Nov	625.92	12.83	2431.77	12221.93	5.246
6-Dec	628.38	13.23	2415.29	12463.15	5.238
7-Jan	628.28	12.71	2463.93	12621.69	5.248
7-Feb	664.23	13.84	2416.15	12268.63	5.259
7-Mar	654.27	13.09	2421.64	12354.35	5.256
7-Apr	678.7	13.67	2525.09	13062.91	5.243
7-May	667.43	13.06	2604.52	13627.64	5.254
7-Jun	654.38	13.03	2603.23	13408.62	5.254
7-Jul	664.36	12.82	2546.27	13211.99	5.258
7-Aug	664.5	12.29	2596.36	13357.74	5.015
7-Sep	709.04	12.72	2701.50	13895.63	4.938
7-Oct	753.95	13.55	2859.12	13930.01	4.756
7-Nov	805.62	14.54	2660.96	13371.72	4.495
7-Dec	802.05	14.12	2652.28	13264.82	4.236
8-Jan	883.22	15.73	2389.86	12650.36	3.94
8-Feb	920.29	17.3	2271.48	12266.39	2.983
8-Mar	964.4	19.18	2279.10	12262.89	2.61
8-Apr	910.36	17.36	2412.80	12820.13	2.278
8-May	887.86	16.91	2522.66	12638.32	1.978
8-Jun	887.77	16.85	2292.98	11350.01	2.001
8-Jul	939.49	17.9	2325.55	11378.02	2.01
8-Aug	834.86	14.31	2367.52	11543.96	1.997
8-Sep	821.03	12.06	2091.88	10850.66	1.812
8-Oct	807.64	10.23	1720.95	9325.01	0.969
8-Nov	753.39	9.65	1535.57	8829.04	0.388
8-Dec	816.12	10.15	1577.03	8776.39	0.155
9-Jan	856.37	11.18	1476.42	8000.86	0.154
9-Feb	934.46	13.19	1377.84	7062.93	0.222
9-Mar	922.06	12.91	1528.59	7608.92	0.181
9-Apr	887.78	12.3	1717.30	8168.12	0.15
9-May	924.36	13.85	1774.33	8500.33	0.177
9-Jun	942.75	14.46	1835.04	8447.00	0.206
9-Jul	929.94	13.17	1978.50	9171.61	0.156
9-Aug	945.77	14.14	2009.06	9496.28	0.16
9-Sep	991.87	16.21	2122.42	9712.28	0.147
9-Oct	1,039.72	17.02	2045.11	9712.73	0.118
9-Nov	1,121.42	17.63	2144.60	10344.84	0.119
9-Dec	1,130.18	17.47	2269.15	10428.05	0.119
10-Jan	1,117.00	17.65	2147.35	10067.33	0.11
10-Feb	1,093.09	15.68	2238.26	10325.26	0.126
10-Mar	1,110.83	16.88	2397.96	10856.63	0.165
10-Apr	1,144.20	17.88	2461.19	11008.61	0.198
10-May	1,199.43	18.2	2257.04	10136.63	0.201
10-Jun	1,229.67	18.3	2109.24	9774.02	0.177
10-Jul	1,192.39	17.73	2254.70	10465.94	0.183
10-Aug	1,210.74	18.19	2114.03	10014.72	0.189
10-Sep	1,265.10	20.23	2368.62	10788.05	0.195
10-Oct	1,338.89	23.18	2507.41	11118.49	0.191
10-Nov	1,366.55	26.36	2498.23	11006.02	0.194
10-Dec	1,389.53	29.1	2652.87	11577.51	0.183
11-Jan	1,360.64	28.41	2700.08	11891.93	0.169
11-Feb	1,367.53	30.58	2782.27	12226.34	0.157
11-Mar	1,417.43	35.53	2781.07	12319.73	0.139
11-Apr	1,470.68	41.82	2873.54	12810.54	0.098
11-May	1,510.33	37	2835.30	12569.79	0.094
11-Jun	1,524.75	35.59	2773.52	12414.34	0.092
11-Jul	1,564.93	37.64	2756.38	12143.24	0.07
11-Aug	1,755.11	40.09	2579.46	11613.53	0.096
11-Sep	1,775.91	38.19	2415.40	10913.38	0.084
11-Oct	1,660.04	31.54	2684.41	11955.01	0.071
11-Nov	1,734.29	32.98	2620.34	12045.68	0.081
11-Dec	1,646.67	30.16	2605.15	12217.56	0.072
12-Jan	1,647.42	30.38	2813.84	12632.91	0.083
12-Feb	1,740.49	33.89	2966.89	12952.07	0.104
12-Mar	1,672.18	32.72	3091.57	13212.04	0.127
12-Apr	1,647.38	31.4	3046.36	13213.63	0.139
12-May	1,586.11	28.59	2827.34	12393.45	0.156
12-Jun	1,592.92	27.8	2935.05	12880.09	0.162
12-Jul	1,588.65	27.15	2939.52	13008.68	0.155
12-Aug	1,623.56	28.55	3066.96	13090.84	0.132
12-Sep	1,737.59	33.4	3116.23	13437.13	0.144
12-Oct	1,741.38	32.93	2977.23	13096.46	0.158
12-Nov	1,719.60	32.52	3010.24	13025.58	0.161
12-Dec	1,683.55	31.78	3019.51	13104.14	0.165
13-Jan	1,668.83	30.88	3142.13	13860.58	0.143
13-Feb	1,627.59	30.12	3160.19	14054.49	0.145
13-Mar	1,589.90	28.59	3267.52	14578.54	0.144
13-Apr	1,483.80	25.09	3328.79	14839.80	0.145
13-May	1,415.45	22.84	3455.91	15115.57	0.109
13-Jun	1,335.87	20.79	3403.25	14909.60	0.094
13-Jul	1,282.10	19.48	3626.37	15499.54	0.093
13-Aug	1,346.95	21.75	3589.87	14810.31	0.083
13-Sep	1,348.50	22.38	3771.48	15129.67	0.081
13-Oct	1,311.05	21.69	3919.71	15545.75	0.087
13-Nov	1,272.85	20.46	4059.89	16086.41	0.084
13-Dec	1,221.20	19.37	4176.59	16576.66	0.085
14-Jan	1,238.76	19.61	4103.88	15698.85	0.072
14-Feb	1,293.86	20.47	4308.12	16321.71	0.066
14-Mar	1,333.09	20.42	4198.99	16457.66	0.078
14-Apr	1,295.18	19.43	4114.56	16580.84	0.09
14-May	1,285.97	19.05	4242.62	16717.17	0.087
14-Jun	1,275.40	19.54	4408.18	16826.60	0.096
14-Jul	1,308.40	20.62	4369.77	16563.30	0.092
14-Aug	1,290.83	19.46	4580.27	17098.45	0.088
14-Sep	1,238.25	18.28	4493.39	17042.90	0.088
14-Oct	1,219.83	16.95	4630.74	17390.52	0.089
14-Nov	1,170.53	15.69	4791.63	17828.24	0.095
14-Dec	1,194.95	15.97	4736.05	17823.07	0.121
15-Jan	1,244.60	16.82	4635.24	17164.95	0.117
15-Feb	1,226.49	16.55	4963.53	18132.70	0.114
15-Mar	1,175.01	15.92	4900.88	17776.12	0.114
15-Apr	1,195.53	16.08	4941.42	17840.52	0.127
15-May	1,193.27	16.51	5070.03	18010.68	0.125
15-Jun	1,178.39	15.8	4986.87	17619.51	0.131
15-Jul	1,127.39	14.81	5128.28	17689.86	0.13
15-Aug	1,113.27	14.63	4812.71	16528.03	0.142
15-Sep	1,120.32	14.46	4620.16	16284.70	0.136
15-Oct	1,152.25	15.43	5053.75	17663.54	0.125
15-Nov	1,085.31	14.26	5108.67	17719.92	0.119
15-Dec	1,064.72	13.83	5007.41	17425.03	0.233

Upload any documents (excel files, gretl output, Word documents, graphs [either hand drawn

and scanned or electronically created]) before 11:59PM on Saturday 10/13. Make sure all graphs are

labeled completely and clearly.

1. Using the Excel file on Blackboard named GoldData, estimate an ordinary least squares regression

(like the ones we performed in class) of the following form:

Gold = a + B1(Silver) + B2 (Nasdaq) + B3(Federal Funds Rate)

The data are defined as follows:

Date: self explanatory I hope

Gold: Spot price of gold in dollars at the end of the month

Silver: Spot price of silver in dollars at the end of the month

Nasdaq: Spot price of the NASDAQ index at the end of the month

Dow 30: Spot price of the Dow index at the end of the month

Federal Funds Rate: market overnight interest rate for reserves at the end of the month (% points)

All data are real

a) Hypothesize the expected signs for all coefficients (a and B1-B3) (2 points)

b) Give the GRETL output for the regression above. Use both OLS and one other method appropriate

for this data set we discussed in class (a time series) (4 points)

c) Interpret each coefficient completely. Discuss statistical and economic significance. (5 points)

d) Interpret R-squared and the p-value of the F-stat (2 points)

e) Re-estimate using log volume as your dependent variable. Re-interpret all of your coefficients. (5

points)

f) Substitute Nasdaq with the Dow as a regressor. Discuss any differences.(2 points)

g) Using the original model, estimate the point Silver price elasticity of gold prices and the Federal Funds Rate elasticity of gold prices . Evaluate all calculations at the mean levels. Fully interpret your answers. (5 points)