THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 47

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 β₁ is zero,against the alternative that it is positive at the 5% significance level,and interpret your result.

---

Definitions:

Monthly Mortgage

The regular payment made to a lender by a borrower for the purchase of real estate, typically consisting of both principal and interest components.

Spending Habits

Patterns or behaviors related to how individuals or households allocate their money for purchases, savings, and other expenditures.

Utilities Bill

A monthly statement that charges individuals or businesses for the consumption of services like water, electricity, gas, and sewage.

House Colour

The chosen paint or external finish of a residential building's exterior.