An economist examines the relationship between changes in short-term interest rates and long-term interest rates. He believes that changes in short-term rates are significant in explaining long-term interest rates. He estimates the model Dlong = β0 + β1Dshort + , where Dlong is the change in the long-term interest rate (10-year Treasury bill) and Dshort is the change in the short-term interest rate (3-month Treasury bill). Monthly data from January 2006 through December 2010 were obtained from the St. Louis Federal Reserve’s website. A portion of the regression results is shown below (n = 60):

Use a 5% significance level in order to determine whether there is a linear relationship between Dshort andDlong.

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Lower Upper Coefficients Error tStat p-value 95% 95% Intercept-0.0038 000880.4273 0.67080.02 0.01 Dshor0.0473 0.0168 2.8125 0.0067 0.01 0.08 Standard