THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 201

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In a study of foreign holdings in Egyptian banks,the following sample regression results were obtained,based on 14 annual observations:
= -3.25 +
-
+
,and R² = 0.92,
Where the numbers in parentheses under the coefficient estimates are the estimated coefficient standard errors,and
y = Year-end share of assets in Egyptian bank subsidiaries held by foreigners,as a percentage of total assets
x₁ = Annual change,in billions of Egyptian pounds,in foreign direct investment in Egypt
x₂ = Bank price-earnings ratio
x₃ = Index of the exchange value of the Egyptian pounds
-Find a 95% confidence intervals for β₃.

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Definitions:

Increasing-Cost Industry

An industry where the costs of production increase as the industry expands, often due to factors like limited resources or increased prices for inputs.

Market Demand

The total demand for a product or service within a particular market, summed from all individual demands.

LAC Curve

Long-Run Average Cost curve, a graphical representation showing the minimum average cost of production at different levels of output when input prices and technology remain constant.

Constant-Cost Industry

A constant-cost industry is an industry where the costs of production, including inputs, do not change as the industry's output changes.