The tаble belоw shоws the stаtisticаl оutput for the Canadian PPP equation over 401 quarterly observations. The y-variable (dependent) is the calculated quarterly change in the CADUSD exchange rate and the x-variable (independent) is the measured quarterly inflation difference between the US and Canada. Please evaluate the table and explain. Include the following in your answer: Your conclusion with regards to the PPP, i.e.; does the PPP hold? What is the rationale behind the hypothesis test H0? Would this test provide enough evidence? Explain why or why not? SUMMARY OUTPUT Regression Statistics Multiple R 0.865915484 R Square 0.749809626 Adjusted R Square 0.749182582 Standard Error 4.1713E-06 Observations 401 ANOVA df SS MS F Significance F Regression 1 2.08064E-08 2.08064E-08 1195.785577 4.1527E-122 Residual 399 6.94251E-09 1.73998E-11 Total 400 2.77489E-08 Coefficients Standard Error t Stat P-value Intercept 4.6324E-07 2.08524E-07 2.221517169 0.026876442 INF diff 0.915543113 0.026475986 34.58013269 4.1527E-122 H0: B1=1 -3.18994302 0.001534873
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