Question 2 (25 marks) Consider a multiple linear regression model given as follows: really = Bo + Brealg np + B,realms + Byrealint+ /, where realInv is real investment, realgnp is real gross national product, realms is real money supply and realint is real interest rate a) Using the results in Table 1, Is the model globally significant? Justify [3] b) Explain the value of R-square in the table below [3] c) What are the values of the regression sum of squares, residual sum of squares and total sum of squares and degrees of freedom in the table below? [4] d) Interpret the results of the regression in table I below [9] e) Does the sign on the real interest of the coefficients match your explanations? Explain your answer [2] 2 f) What are robust standard error? In the regression results in Table 1 below, are the standard errors robust or not? [3] g) What does the variance Inflation Factor (VIF) test represent? Explain the results [3] Table 1. STATA results from the multiple regression model above. Source SS df MS Number of obs = 30 F( 3, 26) 6.40 Model 248 . 648207 3 82. 8827358 Prob > F 0. 0022 Residual 336. 789323 26 12.9534355 R-squared 0. 4247 Adj R-squared = 0. 3583 Total | 585. 43753 29 20.187501 Root MSE 3.5991 realinves-nt Coef. Std. Err. P>LEI (954 Conf. Interval] realgnp . 0752043 0214284 3. 51 0. 002 . 0311575 . 1192511 realms - . 3566015 3533067 -1. 01 0. 322 -1. 082834 .3696309 realinterest - . 0235767 . 0156341 -1. 51 0. 144 - . 055713 . 0085597 cons 10. 68251 4. 359458 2.45 0. 021 1 . 721518 19.64351 Variance Inflation Factor (vif) Variable VIE 1/VIE realms 2. 96 0. 338047 realinterest 2.03 0. 493027 realgnp 1 . 68 0. 595289 Mean VIF 2.22