Question: Show all working Question 4 A researcher interested in explaining the level of foreign reserves for the country of Barbados estimated the following multiple regression
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Question 4 A researcher interested in explaining the level of foreign reserves for the country of Barbados estimated the following multiple regression model using yearly data spanning the period 2001 to 2016: FR=a+OIL+yEXP+6FDI Where FR = yearly foreign reserves (3000's), OIL = annual oil prices, EXP = yearly total exports ($000's) and FDI = annual foreign direct investment ($000's). The sample of data was processed using MINITAB and the following is an extract of the output obtained: Predictor Coo! stDov t-ratio p-valuo Constant 5491.38 2508.81 2.1888 0.0491 OIL 85.39 18.46 4.626 0.0006 EXP 377.08 112.19 * 0.0057 EDI 396.99 160.66 2.471 ** S = 2.45 R-sq = 96.3% Rsq{adj) = 95.3% Analysis of varianc- Souroo or as MS 3 p aggression 3 1991.31 663.77 ? ?? Error 12 17.4 6.45 Total 15 a) What is dependent and independent variables? b) Fully write out the regression equation c) Fill in the missing values \""', '**', \"rand '??' d) Hence test whether I? is signicant. Give reasons for your answer. e) Perform the F Test making sure to state the null and alternative hypothesis. f) Given an interpretation of the term \"Rsq\" and comment on its value
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