econometric

Question 4 (18 points): Based on the data for the United States for the period of 1970 to 1985, the following regression results were obtained: GNP, = -1.2 + BM, se (2.1) ( ) ( ) (15.1) where GNP is the gross national product (S, in billions) and M is the monetary supply (S. in billions), Note: M includes currency, demand deposits, traveler's checks, and other checkable deposits. (a) Fill in the blank parentheses. (b) What is the estimate of the resulting change in the amount GNP when money supply increases by 50.7 billion? (c) The monetarists maintain that for every $20 billion increase in money supply. the amount of GNP goes up by $180 billion. Does your estimated relationship support this claim" (Be sure to state the null and the alternative hypotheses, the test statistics, their distribution and d.f. and the criterion for rejecting the null, a = 1% ) (d) Write the formula for the P-value of the hypothesis test in fe). (c) Construct a 90% prediction interval for the amount of gross national product when the monetary supply is $330 billion, 890/), 180, where f is the prediction errorBased on the data for the United States for the period of 1970 to 1985, the following regression results were obtained: GNP = -1.2 + 8M. se (2.1) ( ) ( ) (15.1) where GNP is the gross national product (S, in billions) and M is the monetary supply (S. in billions). Note: M includes currency, demand deposits, traveler's checks, and other checkable deposits. (a) Fill in the blank parentheses. (b) What is the estimate of the resulting change in the amount GNP when money supply increases by 50.7 billion? (c) The monetarists maintain that for every $20 billion increase in money supply, the amount of GNP goes up by $180 billion. Does your estimated relationship support this claim? (Be sure to state the null and the alternative hypotheses, the test statistics, their distribution and d.F. and the criterion for rejecting the null, a = 1% ). (d) Write the formula for the P-value of the hypothesis test in (c). (e) Construct a 90% prediction interval for the amount of gross national product when the monetary supply is $330 billion. self)-180, where f is the prediction error