Use the Dataset Growth.wf1 in “resources” — the file growth.pdf defines the variables.
- Run the regression growth = α + βTrade + ε
In eviews: ls growth c trade
- Does trade significantly (at the .05 level) impact growth?
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What does the standard error of the regression mean?
What is your forecast for growth of a nation where trade =.5?
Run the regression:
LS GROWTH C TRADE RGDP60 SCHOOL
What does the F statistic from the regression show?
Test if the coefficients on RGDP60 and SCHOOL are jointly=0.