Question

Can you please explain step by step on how to do it in excel

Does there appear to be a relationship between the variables? A Yes, there appears to be a positive relationship between the variables. OB. Yes, there appears to be a negative relationship between the variables ° C There appears to be a positive relationship between the variables at low levels of a country's trade share, but a negative relationship at high levels of a country's trade share. OD. There is no evident relationship between the variables. One country, Malta, has a trade share (2.001) much larger than the other countries. Should Malta be considered an outlier? y A. Yes. O B. No. Malta is an island nation in the Mediterranean Sea, south of Sicily. Malta is a freight transport site, which explains its large "trade share". Should Malta be included or excluded from the analysis? O A. Malta should be included in the analysis. B. Malta should be excluded from the analysis Suppose you are interested in estimating the following model Growth Bo +1TradeShare + u Run a regression of average annual growth rate (Growth) on the country's trade share (TradeShare). What is the estimated intercept P? The estimated intercept po is (Round your response to three decimal places)

Answer 1

First put the data in Excel sheet.

Here y = growth is dependent variable.

X = Trade share is independent variable.

We have to estimate the regression equation

Growth = $\beta$ ₀ + $\beta$ ₁* Trade share.

Where $\beta$ ₀ is intercept and   $\beta$ 1 is slope.

Using Excel command = INTERCEPT( C3:C67 , D3:D67) Then press ENTER.

You will get 1.862 which is intercept

Also to find slope $\beta$ 1   type command

= SLOPE (C3:C67,D3:D67) Then press Enter.

You will get $\beta$ 1 = slope = 0.103

So regression equation is

Growth = 1.862 + 0.1032* Trede share.