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Unformatted text preview: A one percentage point rise in the interest rate is expected to cause investment to decline by $226.64 billion. • (This is a percentage) WATCH YOUR UNITS WHEN YOU MAKE YOUR INTERPRETATION For exam next Friday BE CAREFUL ABOUT YOUR INTERPRETATIONS!  “A 1% rise in investment is expected to cause the interest rate to fall by 226” • BE CAREFUL OF REVERSE CAUSALITY • You always start with the independent variable (R) having an effect on the dependent variable (I). INTERPRETATION: Thus, we have a 90% level of confidence that the true slope coefficient lies between (161.94 and 291.34) THAT IS, in repeated sampling , 90% of all intervals so constructed will contain USE THIS INFORMATION TO FILL IN THE BLANKS ON THE WORKSHEET • Since the value of the test statistic falls in the critical region, we reject H0....
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 Spring '09
 Casler
 Statistics, Regression Analysis, Standard Deviation, true slope coefficient, percentage point rise, squared total deviation

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