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Explain the meaning of constants and coefficients

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Reference no: EM132515226

IDX = 2.345 - 2 OP - 5 DIR + 6 NE - 15 INF + 15 G t-test = (0,8) (-4.3) (-5.4) (7.3) (1.1) (4.1) F-test = 15.3 R.square = 0.96 n= 30 DW-test = 1.93 MEAN

IDX = composite stock price index (point) 243

OP = oil price on the global market per barrel($) 45

DIR = deposit interest rate (%) 7.5

NE = net export ($ M) 50

INF = inflation rate (%) 12

G = rate of economic growth (%) 8

a. Explain the meaning of constants and their coefficients.

b. Explain the meaning of the results of t-test, F-test and DW test.

c. Explain the meaning of R-square.

d. What do you think is the ideal model? Why?

e. What other variables can you add to the model.

Reference no: EM132515226

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