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If Speculators Anticipate the Value of the Euro to Rise,they

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If speculators anticipate the value of the Euro to rise,they enter into futures contracts requiring they deliver Euros in the future.


Definitions:

Explanatory Variables

Variables in a statistical model that are used to explain variations in the dependent variable; also known as independent variables.

Qualitative Predictor Variables

Variables that categorize or describe data based on attributes or qualities, such as gender, color, or type, which do not have a numerical value.

Dummy Variables

Numerical variables used in regression analysis to represent subgroups of the sample in a study.

Regression Model

A statistical technique that models and approximates the relationship between a dependent variable and one or more independent variables.

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