An autoregressive distributed lag model for a country observed by 25 yearly observations is estimated as where
Question:
An autoregressive distributed lag model for a country observed by 25 yearly observations is estimated as
where
ŷ = inflation rate
x1 = Consumer Price Index (CPI)
x2 = price set by government
x3 = demand
The numbers below the coefficients are the coefficient standard errors.
a. Interpret the coefficients of the lagged variable.
b. Test at the 5% level the null hypothesis of the effect of the previous inflation rate on the current inflation rate.
c. Interpret the coefficient of determination.
d. What do you conclude about the significance of the overall model?
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Related Book For
Statistics For Business And Economics
ISBN: 9781292315034
9th Global Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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