Silver Prices an Economist Is in the Process of Developing a Developing

question 68

Essay

Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x₁)and the interest rate (x₂).She proposes the first-order model with interaction: y = β₀ + β₁x₁ + β₂x₂ + β₃x₁x₃ + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x₁ + 14.7x₂− 1.36x₁x₂ S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE ​ ​
-{Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the price of a barrel of oil and the price of silver are linearly related?

---

Definitions:

Executive Order

A directive issued by the president of the United States that manages operations of the federal government and has the force of law.

Executive Orders

Directives issued by the U.S. President that manage operations of the federal government.

Regulatory Review

The process by which governmental agencies evaluate and possibly revise regulations to ensure their effectiveness, efficiency, and compliance with policy objectives.

Legislative Agendas

The set of policy goals that a legislative body or an individual lawmaker aims to enact and implement.