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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

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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 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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