Question

In this exercise, you will investigate the relationship between growth and trade.

The following table contains data on average growth rates from 1960 through 1995 for 20 countries along with variables that are potentially related to growth.

Use a statistical package of your choice to answer the following questions.

Run a regression of Growthon TradeShare.

Test the null hypothesis Upper H 0 : beta 1 equals 0 nbspH0: β1=0 versus a two-sided alternative hypothesis Upper H 1 : beta 1 not equals 0H1: β1≠0.

1) Compute the t -statistic and p -value. (Round your response to three decimal places )

1-a) Is the estimated regression slope statistically significant? That is, can you reject the null hypothesis Upper H 0 : beta 1 equals 0 nbspH0: β1=0 versus a two-sided alternative hypothesis Upper H 1 : beta 1 not equals 0H1: β1≠0at the 10% significance level? (Yes or No)

1-b) Construct a 90% confidence interval for beta 1β1. (Round your response to three decimal places )

Growth and Tradeshare
TradeShare	Growth
0.140501976	1.919944
0.156622976	0.622526
0.157703221	4.311392
0.160405085	2.93794
0.160815045	1.716816
0.22145839	0.710684
0.299405932	2.88872
0.31307286	2.229341
0.324612707	0.06982
0.324745566	-0.64891
0.329479247	1.979838
0.330021679	2.936421
0.337879002	3.229097
0.339706242	2.437942
0.352317631	-2.80343
0.358856708	1.029457
0.393250912	1.982227
0.41760394	2.700721
0.425837249	-2.75065
0.43557933	0.361696
0.442142904	2.461113
0.444374621	2.386489
0.450546652	1.970423
0.455769301	1.127608
0.468346566	1.168595
0.473254889	2.804492
0.484600782	-0.87872
0.488949597	7.161016
0.509590268	0.939028
0.517664552	0.604594
0.527773321	-0.60038
0.534684658	1.454363
0.543337107	4.879399
0.544243515	1.895053
0.550812602	-0.43202
0.552722335	1.126136
0.560642541	2.390079
0.56074965	2.182811
0.567130983	1.424019
0.575274825	2.892995
0.582814276	0.84463
0.603035331	2.385496
0.605031252	1.614221
0.613616884	3.656368
0.626079738	0.463236
0.639484167	3.019118
0.646913528	2.81129
0.651203632	0.394196
0.681555152	3.192493
0.69943291	-0.334
0.704819918	2.499955
0.729232311	-0.95377
0.742971599	2.71066
0.745497823	6.62713
0.779847086	2.036885
0.798375845	1.128138
0.814710021	1.971751
0.822956383	3.259285
0.830238342	0.423957
0.834204197	2.202147
0.979355395	5.393783
1.105364204	4.120558
1.115916967	2.658313
1.127936959	3.026773

Answer 1