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The following table shows the value of imports (Y). the level of Gross National Product(X,) measured in arbitrary units, and the price index of imported
The following table shows the value of imports (Y). the level of Gross National Product(X,) measured in arbitrary units, and the price index of imported goods(X2), over the twelve-year period 1990 - 2001 for a certain country. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Y 57 43 73 37 64 48 56 50 39 43 69 60 XI 220 215 250 241 305 258 354 321 370 375 385 385 125 147 118 160 128 149 145 150 140 115 155 152 a. Estimate the import function In(Y) = bo+ biln(Xi) + bzX2 + u. b. Interpret the estimates. c. Compute the coefficient of multiple determination. Find the unexplained variation. d. Which of the coefficients are individually statistically significant at the 5 percent level? e. Test the overall significance of the model at 5% (use the F-test)
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