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:...

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:

??=?+????+????+????

Where FR = yearly foreign reserves ($000’s), OIL = annual oil prices, EXP = yearly total exports ($000’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                    SS                  MS            F            p
Regression                  3                  1991.31          663.77          ?          ??
Error                          12                    77.4                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 ? 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.