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In this exercise, you will investigate the relationship between growth and trade. The following table contains data on average growth rates from 1960 through 1995
In this exercise, you will investigate the relationship between growth and trade. The following table contains data on average growth rates from 1960 through 1995 for 20 countries along with variables that are potentially related to growth, Download the data from the table by clicking the download table icon D . A detailed description of the variables used in the data set is available here 0 . Use a statistical package of your choice to answer the following questions. Run a regression of Growth on TradeShare. Test the null hypothesis H0: 1 = 0 versus a two-sided alternative hypothesis H1: 1 # 0. Compute the t-statistic and p-value. The t-statistic is 1.704. (Round your response to three decimal places) The p-value is 0.088 . (Round your response to three decimal places) Is the estimated regression slope statistically significant? That is, can you reject the null hypothesis Ho: 8, =0 versus a two-sided alternative hypothesis H, : 8, #0 at the 10% significance level? A. Yes. X B. No. Construct a 90% confidence interval for $1 . The 90% confidence interval is[. (Round your response to three decimal places)Variable Definitions Variable Definition Growth Average annual percentage growth of real Gross Domestic Product (GDP) from 1960 to 1995. The average share of trade in the economy from 1960 to 1995, measured as the (X + M) Tradeshare sum of exports plus imports, divided by GDP; that is, the average value of GDP from 1960 to 1995, where X = exports and M = imports (both X and M are positive)
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