The following model was fitted to 47 monthly observations in an attempt to explain the difference between certificate of deposit rates and commercial paper rates:

where
Y = commercial paper certificate of deposit rate
less commercial paper rate
X₁ = commercial paper rate
X₂ = ratio of loans and investments to capital
Use the part of the computer output from the estimated regression shown here to write a report summarizing the findings of this analysis.

Transcribed Image Text:

Y = Bo + B1X1 + B2X, + ®