THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 221

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
-Test the null hypothesis that β₂ is zero,against the alternative that it is negative at the 5% significance level,and interpret your result.

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Definitions:

Statistic

A quantitative measure derived from a sample of data used to summarize or describe aspects of that data.

Combined Probability

Combined probability refers to the likelihood of two or more independent events happening at the same time, calculated by multiplying the probabilities of each event.

Calculated Statistic

A calculated statistic is a numerical summary derived from a sample, used for analyzing or making inferences about a population.

Unshaded Area

Represents the portion of a graph or figure that is not marked or covered by a darker color or pattern.