Solutions Statistics

Solution) The economist tried two other regression runs with Exports as the dependent variable. In one model

Question: The economist tried two other regression runs with Exports as the dependent variable. In one model, he used three independent variables: M1, Price, and Exchange. In the other model, he used only two independent variables: M1 and Price. Part of his regression results are shown below:

Regression II

R Square	0.825
Adjusted R Square	0.817
Observations	67

	Coefficients	Standard Error
Intercept	-3.995	2.736
M1	0.364	0.041
Price	0.037	0.004
Exchange	0.242	1.135

Regression III

R Square	0.825
Adjusted R Square	0.819
Observations	67

	Coefficients	Standard Error
Intercept	-3.423	0.541
M1	0.361	0.039
Price	0.037	0.004

(a) In your opinion, which of the three regression models (I, II, III) is the best overall? Support your answer with any statistical reasoning that you feel is appropriate.

(b) What is your estimate of U.S. exports to Singapore in billions of Singapore dollars (using your best model) if M1=9.5, Lend=12.7, Price=155, and Exchange=1.5?

Price: $2.99

Solution: The solution consists of 2 pages
Deliverable: Word Document