Question

Year	Gold_Price	CPI	NYSE
1975	139.29	24.68	503.73
1976	133.77	26.1	612.01
1977	161.1	27.79	555.12
1978	208.1	29.92	566.96
1979	459	33.28	655.04
1980	594.9	37.79	823.27
1981	400	41.7	751.91
1982	447	44.25	856.79
1983	380	45.68	1006.41
1984	308	47.64	1019.11
1985	327	49.33	1285.66
1986	390.9	50.27	1465.31
1987	486.5	52.11	1461.61
1988	410.15	54.23	1652.25
1989	401	56.85	2062.31
1990	386.2	59.92	1908.45
1991	353.15	62.46	2426.04
1992	333	64.35	2539.32
1993	391.75	66.25	2739.44
1994	383.25	67.98	2653.37
1995	387	69.88	3484.15
1996	369	71.93	4148.07
1997	287.05	73.61	5405.19
1998	288.7	74.76	6299.93
1999	290.25	76.39	6876.11
2000	272.65	78.97	6945.57
2001	276.5	81.2	6236.39
2002	342.75	82.49	5000.01
2003	417.25	84.36	6440.31
2004	435.6	86.62	7250.06
2005	513	89.56	7753.95
2006	635.7	92.45	9139.02
2007	836.5	95.09	9740.32
2008	869.75	98.74	5757.05
2009	1087.5	98.39	7184.96
2010	1420.25	100	7964.02
2011	1531	103.16	7477.03
2012	1664	105.29	8443.51
2013	1204.5	106.83	10400.33
2014	1199.25	108.57	10839.24
2015	1060	108.7	10143.42

Use the data in Table 3.7 to estimate the two equations given previously, and use the output to answer the questions below related to each equation,

From the first equation

1.  Goldpricet=β1+β2CPIt+ut

β1= Answer (2 decimals)

β2= Answer (2 decimals)

r2= Answer (4 decimals)

SSR= Answer (0 decimals)

From the second equation,

2.  NYSEindext=β1+β2CPIt+ut

β1= Answer (2 decimals)

β2= Answer (2 decimals)

r2= Answer (4 decimals)

SST= Answer (0 decimals

Answer 1

1. Running regression using Gold_Price as Y and CPI as X we get results as below

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.73
R Square	0.5287
Adjusted R Square	0.52
Standard Error	270.82
Observations	41
ANOVA
	df	SS	MS	F	Significance F
Regression	1	3208987	3208986.55	43.75	0.00
Residual	39	2860429.69	73344.35
Total	40	6069416.24
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	-222.88	124.03	-1.80	0.08	-473.75	28.00
CPI	11.17	1.69	6.61	0.00	7.76	14.59

Gold_Pricet= -222.88+11.17*CPIt+Ut

β1= -222.88

β2= 11.17

r2= 0.5287

SSR=3208986

2.

NYSEindext = -4182.77+124.39*CPIt+Ut

β1=-4182.77

β2= 124.39

r2= 0.8856

SST=448918024

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.94
R Square	0.8857
Adjusted R Square	0.88
Standard Error	1147.18
Observations	41.00
ANOVA
	df	SS	MS	F	Significance F
Regression	1	397593394.33	397593394.33	302.12	0.00
Residual	39	51324629.99	1316016.15
Total	40	448918024
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	-4182.77	525.38	-7.96	0.00	-5245.45	-3120.09
CPI	124.39	7.16	17.38	0.00	109.91	138.86