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Old MathJax webview *I wish to get the solution on the method of matrices I'm inside an exam QUESTION TWO You have been hired by

Old MathJax webview

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*I wish to get the solution on the method of matrices I'm inside an exam

QUESTION TWO You have been hired by the government to determine the impact of interest rates and Gross Domestic Product (GDP) (in billion Kwacha) on Money supply (in billion Kwacha) in Zambia. The data for this assignment, shown in the table below, covers the period 2007 to 2016 Money supply Interest rate GDP 10 19 56 13 19 67 14 22 77 18 21 97 22 19 114 26 12 131 31 10 151 35 12 167 47 13 183 45 16 216 a) Express the data in matrix form. [3 Marks) b) Set up the appropriate (XX) matrix and the XY vector [6 Marks) c) Estimate the parameter vector B and its variance-covariance matrix. [14 Marks) d) Compute the standard errors from the variance-covariance matrix in (c). [3 Marks) e) Hence, test the impact of impact of interest rates and GDP on money supply using Page 3 of 3 the test of significance approach at 5%level of significance. [14 Marks) QUESTION TWO You have been hired by the government to determine the impact of interest rates and Gross Domestic Product (GDP) (in billion Kwacha) on Money supply (in billion Kwacha) in Zambia. The data for this assignment, shown in the table below, covers the period 2007 to 2016 Money supply Interest rate GDP 10 19 56 13 19 67 14 22 77 18 21 97 22 19 114 26 12 131 31 10 151 35 12 167 47 13 183 45 16 216 a) Express the data in matrix form. [3 Marks) b) Set up the appropriate (XX) matrix and the XY vector [6 Marks) c) Estimate the parameter vector B and its variance-covariance matrix. [14 Marks) d) Compute the standard errors from the variance-covariance matrix in (c). [3 Marks) e) Hence, test the impact of impact of interest rates and GDP on money supply using Page 3 of 3 the test of significance approach at 5%level of significance. [14 Marks)

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