7 conclusion we have enough evidence to conclude that

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7. Conclusion: We have enough evidence to conclude that β 1 ≠0. Money supply is significantly related to inflation. 4.4.3.2 Significant relationship between inflation and exchange rate. Significance level=1% Let β 2 =Exchange rate 1. H 0 : β 2 =0 H 1 : β 2 ≠0 2. Significant level: α=1% 3. Critical value: t α/2,n-k-1 = t 0.01/2,30-4-1= ±2.787 4. Decision rule: Reject H 0 if test statistic is larger than the upper critical value or smaller than lower critical value. Otherwise, do not reject H 0. 5. Test statistic: t= 5.7938 6. Decision: Reject H 0. The test statistic (5.7938) is larger than the upper critical value (2.787). 7. Conclusion: We have enough evidence to conclude that β 2 ≠0. Exchange rate is significantly related to inflation. Significance level=5% Let β 2 =Exchange rate 1. H 0 : β 2 =0 H 1 : β 2 ≠0 2. Significant level: α=5% 3. Critical value: t α/2,n-k-1 = t 0.05/2,30-4-1= ±2.060 4. Decision rule: Reject H 0 if test statistic is larger than the upper critical value or smaller than lower critical value. Otherwise, do not reject H 0. 5. Test statistic: t= 5.7938 6. Decision: Reject H 0. The test statistic (5.7938) is larger than the upper critical value (2.060).
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7. Conclusion: We have enough evidence to conclude that β 2 ≠0. Exchange rate is significantly related to inflation. Significance level=10% Let β 2 =Exchange rate 1. H 0 : β 2 =0 H 1 : β 2 ≠0 2. Significant level: α=10% 3. Critical value: t α/2,n-k-1 = t 0.10/2,30-4-1= ±1.708 4. Decision rule: Reject H 0 if test statistic is larger than the upper critical value or smaller than lower critical value. Otherwise, do not reject H 0. 5. Test statistic: t= 5.7938 6. Decision: Reject H 0. The test statistic (5.7938) is larger than the upper critical value (1.708). 7. Conclusion: We have enough evidence to conclude that β 2 ≠0. Exchange rate is significantly related to inflation.
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  • Summer '17
  • ms lau
  • Inflation, 1%, 4.4.3.2, 4.4.3.1, 4.4.3.3, 4.4.3.4

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