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1.1 Assume that you are in charge of the central monetary authority in a mythical country. You are g

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Problem 1.1:



 !"!#$!!%&
'!"!#'
'!
!!%&'(
)
('((!*+!,,"

 !"!#$!!%&
-!*+ !"!#$!!%&
- .!*+/!!%&0!"!#
- %1
Problem 1.2:
X Y X
2
Y
2
XY
* # 2 *# !+
*# ## %*# 1+*# !1"#
1* % !+*2 1% !,*
1% " !*,% 2, *#*
11 "* !+&, #!&2 *1"%
2 "" !% #,*, 1+&
2* &2 !"%2 "+#% 1#*&
2% , *!!% &! 2!2
2& ," *1+2 ,2+, 2%#%
# !+ *# !++ #+
SUM 37.2 75.5 147.18 597.03 295.95

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Problem 1.1: a) These points on a scatter diagram is plotted as follows. Also, the regression line of national income Y on the quantity of money X is plotted in the following diagram. The linear regression equation is: Y = 1.715X + 1.168 b) The slope of 1.715 of the regression line can be interpreted as the amount increased in national income Y when increasing the quantity of money X by 1 unit. The intercept of 1.168 of the regression line can be interpreted as the predicted value of national income Y when the quantity of money X is equal to zero. c) The level that the money supply X should be set to achieve a level of national income Y of 12.0 in 1997 is equal to: Y = 1.715X + 1.168 ? 12.0 = 1.715X + 1.168 ? X = (12.0 - 1.168)/1.715 ? X = 6.3 Problem 1.2: ? X Y X2 Y2 XY ? 2 5 4 25 10 ? 2.5 5.5 6.25 30.25 13.75 ? 3.2 6 10.24 36 19.2 ? 3.6 7 12.96 49 25.2 ? 3.3 7.2 10.89 51 ...
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Anonymous
I was struggling with this subject, and this helped me a ton!

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