Essay
THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In a study of foreign holdings in Egyptian banks,the following sample regression results were obtained,based on 14 annual observations:
= -3.25 +
-
+
,and R2 = 0.92,
Where the numbers in parentheses under the coefficient estimates are the estimated coefficient standard errors,and
y = Year-end share of assets in Egyptian bank subsidiaries held by foreigners,as a percentage of total assets
x1 = Annual change,in billions of Egyptian pounds,in foreign direct investment in Egypt
x2 = Bank price-earnings ratio
x3 = Index of the exchange value of the Egyptian pounds
-Test the null hypothesis that β3 is zero,against the alternative that it is positive at the 5% significance level,and interpret your result.
Correct Answer:

Verified
H0 : β3 = 0,H1 : β3 > 0
Reject H0 if t > tn-K-1,α = t10,0.05 = 1.812
The t...View Answer
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Correct Answer:
Verified
Reject H0 if t > tn-K-1,α = t10,0.05 = 1.812
The t...
View Answer
Unlock this answer now
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