Objective: Use regression tools from assigned reading and learned in class to build and interpret a multiple regression model. Task: Explain Foreign Direct Investment across countries Building a good...

FIN 665 Assignment #3 Objective: Use regression tools from assigned reading and learned in class to build and interpret a multiple regression model. Task: Explain Foreign Direct Investment across countries Building a good explanatory model is trial and error process. The explanatory (independent) variables must have a theoretical effect on the dependent variable of interest. The objective is to build the best multiple regression model to help explain Foreign Direct Investment across countries using a combination of explanatory variables while not violating the assumptions and requirements of linear regression models. The data to build the model is contained in the WEF.dta Stata dataset and is created from the World Economic Forum’s The Global Enabling Trade Report 2012 data platform and contains the following variables: Variable Label Description Country Country ISO 3166 country name Isocode ISO country code ISO 3166-3 country code bei Business Environment Index Business Environment Subindex, 1-7 (best) cpi Corruptions Perception Index Corruptions Perception Index, 1-10 (best) customs Burden of customs procedures Burden of Customs Procedures, 1-7 (best) Ethics Ethics and corruption Ethics and corruption, 1-7 (best) fdi FDI inflows US$ mil Foreign Direct Investment Inflows (US$ millions) gdp GDP US$ bil Gross Domestic Product (US$ billions) geti Global Enabling Trade Index Enabling Trade Index, 1-7 (best) Imports Total imports US$ mil Total Imports (US$ millions) mai Market Access Index Market Access Subindex, 1-7 (best) pop Population mil Population (millions) Rights Property rights Property Rights, 1-7 (best) swt Imports and exports as share (%) of world Imports and Exports as Share (%) of total World Total tariff Tariff rate Tariff rate % Due: 14/14/12 (FM); 14/15/12 (AU) Task: Using the WEF.dta build the best multiple regression model among all possible models using the tools learned in class and from the assigned...