Use the regression output to answer the following questions
i. Identify the 95% confidence interval for the coefficient ?2 and show the calculations that explain its derivation. (20 marks)
ii. Test (at 5% level of significance) the hypothesis that GDP has a positive effect on IN. (20 marks)
iii. Explain why and how the F-statistic was calculated by the software and how it can be used to test for the overall relevance of the regression model. (30 marks)
General guidelines:
(i) Explain well using a Text Editor such as Word.
(ii) Do not write anything that is unrelated to the numeric analysis you have
performed.
(iii) Remember that a proper explanation is as important as correct numerical
calculations.
(iv) Reference your work accurately, acknowledging any source of information
you have used.
(v) Stay within the specified word-limit (± 10%)
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