Question: Based on this hypothetical regression output, answer the following questions: [5*1=5 Marks] Dependent Variable: Stock Index Price Independent Variables Coefficient Estimate p-value Intercept 1865.40 0.069

Based on this hypothetical regression output, answer the following questions: [5*1=5 Marks]

Dependent Variable: Stock Index Price
Independent Variables Coefficient Estimate p-value
Intercept 1865.40 0.069
Interest Rate 120.25 0.005
Unemployment Rate -215.00 0.029
FII Inflows 120.00 0.083
Adjusted R-Square 0.9269
F-Statistic p-value 0.0203
Jarque-Bera p-value 0.2329

  1. Write regression equation after putting the values of estimated coefficients.
  2. Interpret the significant independent variables only (at 95% level of confidence).
  3. Comment on strength/accuracy of the model.
  4. Comment on overall validity of the model (at 95% level of confidence).
  5. Are the residuals normally distributed (at 95% level of confidence)?

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