Ordinary Least Squares (OLS)

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Dependent Variable: GDP Method: Least Squares Date: 02/26/14 Time: 20:28 Sample (adjusted): 1973 2012 Included observations: 40 after adjustments Variable C CPI ER R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient 2.16E+10 49187913 1.25E+09 0.946433 0.943538 8.51E+09 2.68E+21 -969.7937 326.8647 0.000000 Std. Error 2.64E+09 98341352 2.11E+08 t-Statistic 8.174319 0.500175 5.898667 Prob. 0.0000 0.6199 0.0000 6.94E+10 3.58E+10 48.63968 48.76635 48.68548 0.254155

Mean dependent var S.D. dependent var Akaike info criterion Schwarz criterion Hannan-Quinn criter. Durbin-Watson stat

INTERPRETATION
In the above table Probability is 60% for CPI which is great 5 %( 60>5) showing an insignificant relationship i.e. there is no relationship between GDP and CPI. The calculated value of t-statistic for CPI is less than tabulated value (0.5<2) that is showing no relationship between GDP and CPI. Coefficient of CPI is showing positive relationship (49187913) means if CPI increased by 1 unit GDP will increase by 49187913 units. The probability for ER is 0% which is less than 5% (0<5) showing that there is a strong and highly significant relationship between exchange rate(ER) and GDP. The calculated value of t-statistic for ER is greater than tabulated value (5.89 > 2) that is showing significant relationship between GDP and ER. Coefficient of ER is showing positive relationship (1.25) means if ER increased by 1 unit GDP will increase by 1.25 units. The value of R-squared is greater than 70% showing that it is a good model. In F-statistics Probability of the overall model is 0% showing that the model is significant at 5% significance level. There is autocorrelation because the value Durbin-Watson test is less than 1.8 (i.e.0.25<1.8).