Calculations.docx - Question 1 i Determine whether the trend coefficient equals 0 at the 5 significance level To be able to determine if a correlation

# Calculations.docx - Question 1 i Determine whether the...

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Question 1 i. Determine whether the trend coefficient equals 0 at the 5% significance level To be able to determine if a correlation of variables is significant, one needs to compare the p-value to the significance level. Regression coefficient on AP statistics test; B 1= b 1 =Σ [(x I - x) (y i -y)] /Σ [(x i -x) 2 ] ii. Based on the regression results, calculate the GDP growth rate for the month of July 2012? Primarily, when calculating the GDP growth rate, we need two nominal numbers of either the month or year depending on whether if the growth being calculated is monthly or annually. In our case, we are to calculate the monthly GDP growth rate for the month of July. So the primary formula is given by ( GDPof JULY GDPof JUNE 1. ) ÷ ( RealGDPt 1 ) ¿ 100 iii. Determine the average monthly increase in the GDP growth rate each month during the sample period The GDP is used to determine how fast an economy is growing. Since in this case the GDP being calculated was monthly, to get the average, we can Total GDPof Months
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