Px = Personal conusmption expenditures: durable good Py= personal consumption ex
ID: 3217584 • Letter: P
Question
Px = Personal conusmption expenditures: durable good
Py= personal consumption expenditures: non-durable goods
I = Real disposable personal income
R = 3 Year treasury constant maturity rate
C = Constant
Rdebt= real debt
Expect = expectations
I believe the equation will look something like Y = C - 9.6Px + .2I ..... but I'm not sure which terms to use, etc.
Also, once I have the sample regression function, how do I examine it in terms of coefficients, magnitude, errors, etc?
Explanation / Answer
ho: beta_i is not significant. h1: beta_i is significant
IF p-value for a coefficient is greater than alpha (0.05), i fail to reject ho and conclude that coefficient is not significant.
else IF p-value for a coefficient is less than alpha (0.05), i reject ho and conclude that coefficient is significant.
here, PX, I, RDEBT(-1)/(-1) and EXPECT are signfiacnt variables.
y = 14.2397*c - 9.688003*px - 0.459182*py + 0.165759*I + 2.022540*R - 626.5169*RDEBT(-1)/(-1) + 2.795216*EXPECTRelated Questions
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