A researcher interested in explaining the level of foreign reserves for the country of Barbados estimated the following multiple regression model using yearly data spanning the period 2001 to 2016:...


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A researcher interested in explaining the level of foreign reserves for the country of Barbados<br>estimated the following multiple regression model using yearly data spanning the period 2001 to<br>2016:<br>FR=a+B0IL+YEXP+8FDI<br>Where FR = yearly foreign reserves ($000's), OIL = annual oil prices, EXP = yearly total exports<br>(S000's) and FDI = annual foreign direct investment ($000's). The sample of data was processed<br>using MINITAB and the following is an extract of the output obtained:<br>Predictor<br>Coef<br>StDev<br>t-ratio<br>p-value<br>Constant<br>5491.38<br>2508.81<br>2.1888<br>0.0491<br>OIL<br>85.39<br>18.46<br>4.626<br>0.0006<br>EXP<br>-377.08<br>112.19<br>0.0057<br>FDI<br>-396.99<br>160.66<br>-2.471<br>S = 2.45<br>R-sq = 96.3%<br>R-sq (adj) = 95.3%<br>Analysis of Variance<br>Source<br>DF<br>MS<br>F<br>Regression<br>3<br>1991.31<br>663.77<br>??<br>Error<br>6.45<br>Total<br>15<br>a) What is dependent and independent variables?<br>b) Fully write out the regression equation<br>c) Fill in the missing values **', ***', '?'and ??'<br>d) Hence test whether B is significant. Give reasons for your answer.<br>e) Perform the F Test making sure to state the null and alternative hypothesis.<br>f) Given an interpretation of the term

Extracted text: A researcher interested in explaining the level of foreign reserves for the country of Barbados estimated the following multiple regression model using yearly data spanning the period 2001 to 2016: FR=a+B0IL+YEXP+8FDI Where FR = yearly foreign reserves ($000's), OIL = annual oil prices, EXP = yearly total exports (S000's) and FDI = annual foreign direct investment ($000's). The sample of data was processed using MINITAB and the following is an extract of the output obtained: Predictor Coef StDev t-ratio p-value Constant 5491.38 2508.81 2.1888 0.0491 OIL 85.39 18.46 4.626 0.0006 EXP -377.08 112.19 0.0057 FDI -396.99 160.66 -2.471 S = 2.45 R-sq = 96.3% R-sq (adj) = 95.3% Analysis of Variance Source DF MS F Regression 3 1991.31 663.77 ?? Error 6.45 Total 15 a) What is dependent and independent variables? b) Fully write out the regression equation c) Fill in the missing values **', ***', '?'and ??' d) Hence test whether B is significant. Give reasons for your answer. e) Perform the F Test making sure to state the null and alternative hypothesis. f) Given an interpretation of the term "R-sq" and comment on its value.

Jun 08, 2022
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