Question

Year Short Term Long Interbank 91-Tbill CBR Average Deposit Rate Savings 2011

Interbank 91-Tbill CBR Average savings
deposit rate
January 1.0 2.0 6.0 3.4 1.3
February 1.0 3.0 5.8 3.4 1.4
March 1.0 3.0 6.0 3.5 1.4
April 4.0 3.0 6.0 3.5 1.4
May 6.0 5.0 6.3 3 .6 1.4
June 6.0 9.0 6.3 3.7 1.4
July 9.0 9.0 6.3 3.9 1.4.
August 14.0 9.0 7.0 4.1 1.4
September 7.0 12.0 7.0 4.2 1.3
October 15.0 15.0 11.0 4.8 1.3
November 29.0 16.0 16.5 5.7 1.4
December 22.0 18.0 18.0 7.0 1.6
required Supposing you want to establish if the 91-T bill explains the Central Bank Rate (CBR), estimate a simple linear regression model for this explanation.

Answer 1

To establish if the 91-T bill explains the Central Bank Rate (CBR), you can estimate a simple linear regression model.

Step-by-step explanation:

To establish if the 91-T bill explains the Central Bank Rate (CBR), you can estimate a simple linear regression model. In this case, the 91-Tbill would be the independent variable and the CBR would be the dependent variable. By determining the relationship between the two variables, you can see if the 91-Tbill can be used to explain changes in the CBR over time.

To estimate the linear regression model, you would calculate the slope and intercept of the regression line, using the least squares method. The slope would represent the change in the CBR for a one unit increase in the 91-Tbill, while the intercept would represent the starting value of the CBR when the 91-Tbill is zero.

Once you have estimated the regression model, you can assess its goodness of fit by looking at the R-squared value, which represents the proportion of variance in the CBR that is explained by the 91-Tbill. A high R-squared value would indicate a strong relationship between the two variables.