Suppose that an MSC student collects data for 72- monthly exchange rates for US dollar and...
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Suppose that an MSC student collects data for 72- monthly exchange rates for US dollar and Pounds against KSH. She estimated the long-run relationship between US dollar and Pounds and reports the following output given as Results 1 and Results 2 shown below. Required: Interpret the results explaining the relationship between Us dollar and pound as suggested by the outputs. (8 Marks) step Results 1: Impulse Response Function (Table and Graphs) 4.65322 0 0 5 -1.74784 0 0- -5- (1) oirf 0- 730191 -5- .297792 122691 (1) Lower 0 3.87687 E -3.629271 E -288316 6 -.931884 E .229990 (1) Upper 5.42958 9 -.466406 9 2 1.7404 9 -3362 9 .474179 1.63921 6 E (21 oirf 4 E 051582 .264976 8 -.168786 .64451 95% lower and upper bounds reported. (1) irfnane modeli, impulse C.pounds, and response D.pounds (2) irfnane (3) irfname (4) ir fnane modell, impulse = D.pounds, and response = D.usd modeli, impulse = D.usd, and response = D.pounds sodell, impulse = D.usd, and response = D.usd (2) Lower 1.93579 9 -1.27495 9 -.176361 9 -.372768 9 -.097352 model1, D.pounds, D.pounds model1, D.usd, D.pounds 6 (2) Upper 2.04264 8 -.628221 B .706314 8 155357 8 .186371 8 step 1 0 9 -1.84123 0 10 (3) birf 507001 -255791 9 0 183413 95% CI Graphs by iriname, impulse variable, and response variable (3) Lower 6 -3.93483 6 -.203799 6 -.716868 6 158547 2 (3) Upper 0 9 .648433 9 1.37931 @ 285286 9 1.83512 8 4 8 orthogonalized irf (4) oirf E 505594 .229321 6 -.69192 365372 .637832 modell, D.pounds, D.usd model1, D.usd, D.usd 6 (4) Lower 1.52094 9 -1.18482 9 -.809267 9 -.28407 8 -.868761 Upper 2.1413 € .893635 E .64791 € 10083 E 144424 Results 2: Forecast Error Variance Decomposition (Table and Graphs) 8 1 12 3 B step 5- 0- 1 5- 8 0- 1 1 (1) fevd (1) Lower 8 1 1 .879344 739325 .879344 739325 .871979 .871879 .869515 .869515 (1) Upper 0 1 1 721113 721113 1.32105 717233 1.9218 717233 1.3218 0 95% lower and upper bounds reported (1) irfname modell, impulse = D.pounds, and response = D.pounds (2) irfname (3) irfname (4) irfname modeli, impulse D.usd, and response = D.usd vodeli, impulse = D.oounds, and response = D.usd modell, impulse = D.usd, and response = D.pounds 2 (2) fevd 412975 412975 modell, D.pounds, D.pounds (2) Lower modell, D.usd, D.pounds 1.31966 1.31965 1.32105 437924 437924 .244091 .631757 .244691 .631757 .243522 .633223 438372 .243522 .633223 438372 (2) Upper 8 € 598997 .598997 8 234954 234954 .245482 .625243 128656 .245482 .625243 .128656 8 step 0 8 95% CI Graphs by irfname, impulse variable, and response variable 2 (3) fevd 8 8 8 9 -.019664 263975 019654 263975 .128921 -.821846 278887 128921 -.821846 278887 138485 -.921798 282767 138485 -.921798 .282767 (3) Lower 8 8 8 2 (3) Upper model1, D.pounds, D.usd model1, D.usd, D.usd į fraction of mse due to impulse 6 (4) fevd 0 € 8 587025 .409003 .765846 587025 .409003 .765646 564637 .374757 .754518 .564637 562076 (4) Lover R 374757 368243 562076 368243 561628 .366777 561628 .366777 (4) Upper .754518 .755989 .755989 .756478 .756478 Suppose that an MSC student collects data for 72- monthly exchange rates for US dollar and Pounds against KSH. She estimated the long-run relationship between US dollar and Pounds and reports the following output given as Results 1 and Results 2 shown below. Required: Interpret the results explaining the relationship between Us dollar and pound as suggested by the outputs. (8 Marks) step Results 1: Impulse Response Function (Table and Graphs) 4.65322 0 0 5 -1.74784 0 0- -5- (1) oirf 0- 730191 -5- .297792 122691 (1) Lower 0 3.87687 E -3.629271 E -288316 6 -.931884 E .229990 (1) Upper 5.42958 9 -.466406 9 2 1.7404 9 -3362 9 .474179 1.63921 6 E (21 oirf 4 E 051582 .264976 8 -.168786 .64451 95% lower and upper bounds reported. (1) irfnane modeli, impulse C.pounds, and response D.pounds (2) irfnane (3) irfname (4) ir fnane modell, impulse = D.pounds, and response = D.usd modeli, impulse = D.usd, and response = D.pounds sodell, impulse = D.usd, and response = D.usd (2) Lower 1.93579 9 -1.27495 9 -.176361 9 -.372768 9 -.097352 model1, D.pounds, D.pounds model1, D.usd, D.pounds 6 (2) Upper 2.04264 8 -.628221 B .706314 8 155357 8 .186371 8 step 1 0 9 -1.84123 0 10 (3) birf 507001 -255791 9 0 183413 95% CI Graphs by iriname, impulse variable, and response variable (3) Lower 6 -3.93483 6 -.203799 6 -.716868 6 158547 2 (3) Upper 0 9 .648433 9 1.37931 @ 285286 9 1.83512 8 4 8 orthogonalized irf (4) oirf E 505594 .229321 6 -.69192 365372 .637832 modell, D.pounds, D.usd model1, D.usd, D.usd 6 (4) Lower 1.52094 9 -1.18482 9 -.809267 9 -.28407 8 -.868761 Upper 2.1413 € .893635 E .64791 € 10083 E 144424 Results 2: Forecast Error Variance Decomposition (Table and Graphs) 8 1 12 3 B step 5- 0- 1 5- 8 0- 1 1 (1) fevd (1) Lower 8 1 1 .879344 739325 .879344 739325 .871979 .871879 .869515 .869515 (1) Upper 0 1 1 721113 721113 1.32105 717233 1.9218 717233 1.3218 0 95% lower and upper bounds reported (1) irfname modell, impulse = D.pounds, and response = D.pounds (2) irfname (3) irfname (4) irfname modeli, impulse D.usd, and response = D.usd vodeli, impulse = D.oounds, and response = D.usd modell, impulse = D.usd, and response = D.pounds 2 (2) fevd 412975 412975 modell, D.pounds, D.pounds (2) Lower modell, D.usd, D.pounds 1.31966 1.31965 1.32105 437924 437924 .244091 .631757 .244691 .631757 .243522 .633223 438372 .243522 .633223 438372 (2) Upper 8 € 598997 .598997 8 234954 234954 .245482 .625243 128656 .245482 .625243 .128656 8 step 0 8 95% CI Graphs by irfname, impulse variable, and response variable 2 (3) fevd 8 8 8 9 -.019664 263975 019654 263975 .128921 -.821846 278887 128921 -.821846 278887 138485 -.921798 282767 138485 -.921798 .282767 (3) Lower 8 8 8 2 (3) Upper model1, D.pounds, D.usd model1, D.usd, D.usd į fraction of mse due to impulse 6 (4) fevd 0 € 8 587025 .409003 .765846 587025 .409003 .765646 564637 .374757 .754518 .564637 562076 (4) Lover R 374757 368243 562076 368243 561628 .366777 561628 .366777 (4) Upper .754518 .755989 .755989 .756478 .756478
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Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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