Regression test statistics
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1. Briefly explain the meaning of R2. A time series analysis of demand tends to result in a higher R2 than one using cross-sectional data. Why do you think this is the case?
2. Briefly explain the meaning of the t-test for regression analysis. How can the “rule of two” be used to evaluate t-ratios?
3. Check out the web links Summarize one and explain what it might tell us about future business.
https://www.aaii.com/investing-basics/article/the-top-10-economic-indicators-what-to-watch-and-why
https://www.statista.com/statistics/274326/big-mac-index-global-prices-for-a-big-mac/
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