Examples of True/False/Uncertain type questions For each of the following statements and explainwhether the statement is true, false or uncertain. Be sure to fully explain your answers, because It Is the explanation rather than the ch0|ce you make that matters most for the mark. [5 marks each] la) If we have modeled the trend adequately in time series regressions, we can just look at the value of R2 as a reliable goide to whether the model is a good model. [b] A statistically significant relationship between a variable on the right-hand side of a re ression (that is, an X variable] and a variable ofthe left-hand side [that is, a Y variable) proves t at X causes Y. (c) In a multiple regression model, testing the hypothesis that R2 = U is equivalent to testing that Bi = 0 for thejth variable. [d] If life expectancy and the price level are both trending upwards, a regression of life expectancy on the price level can be used to justify the claim that 'inflation helps people to live longer' {e} Let 5, denotes annual savings and i1 denotes annual income. To estimate savings function over time, we can simply run the followmg model: 5, =o+ [31 it +|32 i,_1+ 33!). it+ a, wheree it=i,-i,_l