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You are given the following STATA results from the regression of expenditures of imported goods on per capita income: where Yr is the consumption of
You are given the following STATA results from the regression of expenditures of imported goods on per capita income: where Yr is the consumption of imported goods for country i in 2009 and Xi represents per capita income. This sample contains 107 countries. /Note: in STATA regression output the t-stat shows tests where the null hypotheses are Bo = 0 and B1 = 0/ yi = -261.9 + 0.2453 X; ; R2 = 0.57 SE (31.32) (?) t stat ? 16.616 a) Fill in the two blanks in the regression output. b) Give the interpretations of the estimated intercept and slope coefficients from the regression. c) Is the slope coefficient different from zero? At what significance level? What is the associate p-value? d) Given the R value, do you believe that higher personal income leads to higher expenditure in imported goods? Interpret the R2 and explain your reasoning. e) Imagine that R were not given. Could you calculate it from the information you have? Explain
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