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TABLE 1: An economist at EEbank a study of the relationship between DDE/NSE All Shares index return (JALSH) and consumer price index (CP1) from 2006

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TABLE 1: An economist at EEbank a study of the relationship between DDE/NSE All Shares index return (JALSH) and consumer price index (CP1) from 2006 to 2017, the data collected is shown in the Table 1 below. DDE/NSE All shares index return (JALSH) and consumer price index (CPI) from 2006 to 2017. Use Table 1 above to answer this question Q.1.1 The estimated regression equation with dependent variable FTSE/ISE All Shares index retum (IALSH) and independent variable consumer price index (CPI) was JALSBz=^n+^1+CPIr Q.1.1.1 Calculate ^0 Q.1.1.2 Calculate ^1 Q.1.2 Comment on the coefficient of CPI in the model calculated in Q.1.1.2. D. The Independent Inetitute of Fducati-n (Pty) I td 2032 Pase 3 od 7 Q.1.3 Calculate the IALSH predicted if the CPI seore is increased by 0.5 points (CPI=0.5). Interpret. Q.1.4 Compute the fitted values and residuals for each observation and verify that the residuals (approximately) sum to zero. Q.1.5 Calculate SE(^1) the estimated standard error of ^1 Q.1.6 Calculate the coefficient of determination {R2 for the regression cquation in Q.1.1. Interpret your answer. [Leave your answer to 3 decimal ploces]. TABLE 1: An economist at EEbank a study of the relationship between DDE/NSE All Shares index return (JALSH) and consumer price index (CP1) from 2006 to 2017, the data collected is shown in the Table 1 below. DDE/NSE All shares index return (JALSH) and consumer price index (CPI) from 2006 to 2017. Use Table 1 above to answer this question Q.1.1 The estimated regression equation with dependent variable FTSE/ISE All Shares index retum (IALSH) and independent variable consumer price index (CPI) was JALSBz=^n+^1+CPIr Q.1.1.1 Calculate ^0 Q.1.1.2 Calculate ^1 Q.1.2 Comment on the coefficient of CPI in the model calculated in Q.1.1.2. D. The Independent Inetitute of Fducati-n (Pty) I td 2032 Pase 3 od 7 Q.1.3 Calculate the IALSH predicted if the CPI seore is increased by 0.5 points (CPI=0.5). Interpret. Q.1.4 Compute the fitted values and residuals for each observation and verify that the residuals (approximately) sum to zero. Q.1.5 Calculate SE(^1) the estimated standard error of ^1 Q.1.6 Calculate the coefficient of determination {R2 for the regression cquation in Q.1.1. Interpret your answer. [Leave your answer to 3 decimal ploces]

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