Suppose you are estimating parameters of the following regression model: t = 9941 + 0.25 X2t+ 15125 X3t

(6114) (0.121) (7349)

R 2= 0.87, RSS = 10310

(iv) Comment on the explanatory power of the regression.

(v) Using t-tests show whether individual coefficients are significantly different from zero at 5% level of significance.

(vi) Test whether the coefficient of X2 is significantly different from 1 at 5% level of significance.

(vii) Carry out an appropriate test to check if coefficients are jointly significant.