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# Does anybody know this?

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?

### 4 Answers

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- Anonymous1 decade ago
Your equation is flawed because it failed to consider the mass production of American dollars by the Federal Reserve.

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