Assignment:
Please provide all answers with solution and explanation by using RSTUDIO. You should use previous HW.
Following the previous homework of Growth and Tradeshare :
1. Run a regression of Growth on tradeshare ( you have already done that for previous homework) .
2. What is the model and what is the predicted equation?
3. What is the effect of tradeshare on growth?
4. Is the coefficient of tradeshare significant? Please set up the hypothesis null and alternative and create the tstatistic yourself.
5. What is the 95% confidence interval associated with the slope?
6. Create a dummy variable which would be 1 if tradeshare is bigger/equal to 0.5 and be 0 otherwise.
7. Run a regression of growth on this dummy, interpret the coefficient. Is it significant?