Interpret all the result in this regression table Ex= exchange rate Xc SUMMARY O

Question

Interpret all the result in this regression table Ex= exchange rate Xc SUMMARY OUTPUT Multiple R R Square Adjusted R Square Standard Error Observations 0.165709989 0.0274598 0.014824556 2.20086E+11 49 ANOVA MS Significance Regression Residual Total 2 6.2912E+22 3.1456E+22 0.649408025 0.527076824 46 2.22815E+24 4.84379E+22 48 2.29106E+24 t Stat GrDP Intercept ex X Variable 1 int xVariable 2 6.7646E+114.55166+11 1.486184755 0.144052465 -2.39741E+11 1.59266E+12 2.39741E+11 1.59266E 12 1.17574E+11 120371E+11 0.976762755 0.333795663 -3.59868E+11 1.2472E+11 3.59868E+11 1.2472E+11 47998 4256451626 -0.734872207 0.466147407 -11695740743 5439844746 -11695740743 5439844746

Explanation / Answer

Since the adjusted R square is negative, the model lacks predictive capacity.

For the overall model(Anova):

H0 : b1 = b2 =0

H1­ ­: atleast one bj is not equal to zero.

Since the p-value(0.527) > 0.05, we accept the null hypothesis and hence conclude that b1 = b2 =0. It is an insignificant model.

For individual coefficients :

H0 : the individual coefficients are insignificant that is bj =0

H1 : the individual coefficients are significant that is bj 0

Since the p-value(0.333) >0.05, we accept the null hypothesis and hence conclude that b1 =0.

Since the p-value(0.466) >0.05, we accept the null hypothesis and hence conclude that b2 =0.

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