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# Can anydoby answer this...can't really figure it out.?

The following regression relates to the price level (PGNP) with the base year 1985 to the exchange rate (EXCH) in pesos per dollar:

PGNP= -44.01304+9.176165EXCH,

t (-3.14) (12.65)

where R^2=.88, n=23,F=160.04

i. Compute for the standard error of each coefficient.

ii. Is the slope coefficient statistically different from zero? Show the appropriate test.

iii. Interpret the slope coefficient. Does it make economic sense?

### 2 Answers

- ironduke8159Lv 71 decade agoFavorite Answer
The following regression relates to the price level (PGNP) with the base year 1985 to the exchange rate (EXCH) in pesos per dollar:

PGNP= -44.01304+9.176165EXCH,

t (-3.14) (12.65)

where R^2=.88, n=23,F=160.04

This is a very confusing question.

You say R^2 =.88 and F=160.04 but neither of these appear in the equation. Also you do not indicat what t(-3.14)(12.65) means.

The equation appears to be PGNP = 9.1716165*EXCH -44.01304

This is a linear equation and indicates that the PGNP is

-44.01304 when the EXCH =0. The slope coefficient is 9.176165, which is quite different from zero.

I'm not sure what price level means, but it seems strange that it would be -44 when when you got zero pesos /dollar

I think a more detailed description of the problem is necessary, if you want to get real help.