QUESTION 1

1. We are interested in measuring the effect of inflation rate (X) on TBILL interest rates (Y). Data for 14 years are showed below:

   Year	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
   INFLATION	2.53	3.32	1.7	1.61	2.68	3.38	1.55	2.37	1.87	3.25	3.41	2.54	4.08	0.09
   TBILL	5.56	5.08	5.18	4.83	4.75	5.9	3.34	1.68	1.05	1.58	3.39	4.81	4.44	1.62

   Compute

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 2

1. Refer to the data in question 14.

   Compute

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 3

1. Refer to the data in question 14.

   Compute

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 4

1. Refer to the data in question 14.

   Compute

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 5

1. Refer to the data in question 14.

   Compute the estimate of the slope coefficient

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 6

1. Refer to the data in question 14.

   Compute the estimate of the intercept

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 7

1. Refer to the data in question 14.

   Compute the predicted TBILL rate if the inflation rate is 2.5

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 8

1. Refer to the data in question 14.

   Compute the total sum of squares TSS=

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 9

1. Refer to the data in question 14.

   Compute the explained sum of squares ESS=

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 10

1. Refer to the data in question 14.

   Compute the residual sum of squares RSS=

   NOTE: WRITE YOUR ANSWER USING 3 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 11

1. Refer to the data in question 14.

   Compute the coefficient of determination

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 12

1. Refer to the data in question 14.

   Compute the the estimate of , the standard deviation of the error term u. Use the fact that

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 13

1. Refer to the data in question 14.

   Compute the standard error of the slope coefficient

   NOTE: WRITE YOUR ANSWER USING 2 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

QUESTION 14

1. Refer to the data in question 14.

   You want to test whether the slope coefficient is significant at 95% level of confidence. Compute the p-value for this test.

   NOTE: WRITE YOUR ANSWER USING 3 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN.

1 points

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