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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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 R 2 = 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 x 1 = Annual change,in billions of Egyptian pounds,in foreign direct investment in Egypt x 2 = Bank price-earnings ratio x 3 = 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.