download Job4 data table 1.3 table 2.8
Use data from folder “gujrati data” saved in your computer.
1.3. Table 1.3 gives the foreign exchange rates for seven industrialized countries
for years 1977–1998. Except for the United Kingdom, the exchange rate is
defined as the units of foreign currency for one U.S. dollar; for the United
Kingdom, it is defined as the number of U.S. dollars for one U.K. pound.
a. Plot these exchange rates against time and comment on the general
behavior of the exchange rates over the given time period.
b. The dollar is said to appreciate if it can buy more units of a foreign
currency. Contrarily, it is said to depreciate if it buys fewer units of a
foreign currency. Over the time period 1977–1998, what has been the
general behavior of the U.S. dollar? Incidentally, look up any textbook
on macroeconomics or international economics to find out what factors
determine the appreciation or depreciation of a currency.
2.15. Table 2.8 gives data on expenditure on food and total expenditure, measured
in rupees, for a sample of 55 rural households from India. (In early
a. Plot the data, using the vertical axis for expenditure on food and the
horizontal axis for total expenditure, and sketch a regression line
through the scatterpoints.
b. What broad conclusions can you draw from this example?
c. A priori, would you expect expenditure on food to increase linearly as
total expenditure increases regardless of the level of total expenditure?
Why or why not? You can use total expenditure as a proxy for total
income.
To add a trend line/regression line after plotting the scatter diagram, right click on the scatter points in graph/ diagram, you will find an option “ Add trend line”, click it and choose type of trend ( linear/ exponential/ log etc).
- Also estimate the OLS REGRESSSION of expenditure (Y) on food on total expenditure using data table 2.8. Interpret the result.
[ Hint : data analysis : regression , choose range of data for dependent and independent and output range]
