CASE STUDY ONE – continued
In this section, you will estimate a simple linear regression model to fit the exchange rate. From Assignment One, choose the input variable that has the strongest correlation with the exchange rate that you believe will produce a good model (this is the variable that we called “PREDICTOR”).
Following on from Assignment One, use the same data set and a level of significance of = 0.05 for all tests in this study.
(a) Draw the scatter diagram for these two variables. (2 marks)
(b) Estimate the model to predict the exchange rate. How much of the variation in the exchange rate is explained by your model? Is this statistically significant? Test to see whether the intercept is required in your model. (4 marks)
(c) Obtain a graph of the residuals vis-á-vis the independent variable for part (b). Is there any evidence of problems?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more