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I.1/. (on. 6) Testing Relative PPP. You have data off the SEAVUSD and CPI Indexes for Sweden and the US from January 1970 to November

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I.1/. (on. 6) Testing Relative PPP. You have data off the SEAVUSD and CPI Indexes for Sweden and the US from January 1970 to November 1007. You run the following regression: changes in the SEK/USD exchange rate against inflation rate differentials (Iswed-Ius). Below, you have the excel regression output. Let RSS(Ho)= 0.37515. Using individual t-tests and a joint F-test, test relative PPP. REGRESSION RESULTS SUMMARY OUTPUT

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