Question

Please explain step by step on how to do this in excel.

Empirical Exercise 5.2 Quostion Holp 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. Download the data from the table by clicking the download table icon p . A detailed description of the variables used in the data set is available here i . Use a statistical package of your choice to answer the following questions. Run a regression of Growth on TradeShare. Test the null hypothesis Ho: P1 versus a two-sided altemative hypothesis H:P0. Compute the t+-statistic and p-value. The t-statistic is 1.704 (Round your rosponso to throe decimal places) The p-value is 0.088 (Round your response to three decimal places) Is the estimated regression slope statistically significant? That is, can you reject the null hypothesis Ho: M 0 versus a two-sided alternative hypothesis H 0 at the 10% significance level? A. Yes. XB. No. Construct a 90% confidence interval for The 90% confidence interval is O. D (Round your response to three decimal places) l th and Tradeshare 2 Trade Share Growth 25 0.45054665 1.96410248 26 0.4557693 1.1318848 29 0.48460078-0.8832308 30 0.4889496 7.16068363 32 0.51766455 0.60309476 45 0.60503125 1.62041458 46 0.61361688 3.65501078 48 0.63948417 3.01716494 50 0.65120363 0.39865412 51 0.68155515 3.19033669 53 0.70481992 2.50119004 54 0.72923231-0.9547692 55 0.7429716 2.70692543 56 0.74549782 6.6343484 57 0.77984709 2.03621754 58 0.79837585 1.1250621 59 0.81471002 1.96594916 60 0.82295638 3.25954095 61 0.83023834 0.42445117 62 0.8342042 2.20909526 63 0.97935539 5.38833236 64 1.1053642 4.12282891 65 1.11591697 2.65389252 66 1.12793696 3.02500279

Answer 1

Since there is so much data to type, i am going to give the steps

Note that I have generated random numbers

now go to

data -> data analysis -> regression

match the dialogue box as in the image

G15 2 Tradeshar Growth 3 0.471040.800133 4 0.993624 0.476136 5 0.841279 0.329938 6 0.377075 0.530008 7 0.2280620.502263 8 0.5992940.972676 9 0.138447 0.711182 10 0.3396930.768423 11 0.0743420.740639 12 0.927727 0.191891 13 0.998045 0.117443 14 0.988451 0.464053 15 0.427768 0.180179 16 0.172783 0.262771 17 0.387746 0.638314 18 0.9894450.964401 19 0.1292810.502788 20 0.489561 0.391229 21 0.31506 0.680017 22 0.543911 0.710643 23 0.986638 0.435058 24 0.383857 0.259465 25 0.505706 0.478982 26 0.700334 0.281038 27 0.892347 0.560874 28 0.577147 0.134548 29 0.760631 0.57105 30 0.988678 0.545455 31 0.703603 0.866262 32 0.616629 0.419782 33 0.430108 0.344239 34 0.1799270.207987 35 0.5993730.493005 36 0.528456 0.780334 37 0.665858 0.495841 Regression Input OK Input Y Range: SBS2:SBS66 Cancel Input X Range: SAS2:SAS66 Help Constant is Zero 90 Labels VI Confidence Level: % Output options O output Range (e) New Worksheet Ply: O New Workbook Residuals Residuals Standardized Residuals Line Fit Plots Residual Plots Normal Probability Normal Probability Plots

click OK

this will create some sort of

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.111039544
R Square	0.01232978
Adjusted R Square	-0.003600385
Standard Error	0.274611246
Observations	64
ANOVA
	df	SS	MS	F	Significance F
Regression	1	0.058367583	0.058367583	0.7739895	0.382383006
Residual	62	4.675502871	0.075411337
Total	63	4.733870454
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 90.0%	Upper 90.0%
Intercept	0.579473151	0.069801408	8.30174019	1.1871E-11	0.439942125	0.719004176	0.46291847	0.696027832
Tradeshare	-0.104281185	0.118532767	-0.879766731	0.382383006	-0.341224811	0.13266244	-0.302207693	0.093645323

consider last Tradeshare

TS will be value in column t Stat

p-value will be column p-value

if p-value < 0.10 , then the slope is significant ,otherwise not

90% confidence interval is in the column lower 90% and upper 90% with row Tradeshare

Please rate

Note again that here numbers are random , you have to repeat the steps to genrate answers yourself