Question: An attempt was made to evaluate the forward rate as a predictor of the spot rate in the Spanish treasury bill market. For a sample

An attempt was made to evaluate the forward rate as a predictor of the spot rate in the Spanish treasury bill market. For a sample of 79 quarterly observations, the estimated linear regression,
= .00027 + .7916x
was obtained,
where
= actual change in the spot rate
x = change in the spot rate predicted by the forward rate
The coefficient of determination was .1, and the estimated standard deviation of the estimator of the slope of the population regression line was .27.
a. Interpret the slope of the estimated regression line.
b. Interpret the coefficient of determination.
c. Test the null hypothesis that the slope of the population regression line is zero against the alternative that the true slope is positive, and interpret your result.
d. Test the null hypothesis that the slope of the population regression line is one, and interpret your result.

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