The least square regression results of a model are known as follows:

匿名用户 最后更新于 2021-06-28 18:02 其他 All Others

The least square regression results of a model are known as follows:

Where, Y: government bond price ($100), X: interest rate (%).

i=101.4-4.78Xt (45.2) ( 1.53) n=30 R2=0.31

(1) Is the sign of the coefficient correct, and give the reason.

(2) Why is the left side Y instead of Y.

(3) Whether the error term u is omitted in this model; (4) What is the economic significance of the model parameters?

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