代做R HW2留学生、代写Decision Making、代写R编程语言、R代做

日期：2019-11-20 10:46

R HW2 - Statistical Decision Making

November 2019

In this HW, you are investigating whether the purchasing power parity theorem

is correct or not. If you are not familiar with this theorem, you can check

https://www.investopedia.com/updates/purchasing-power-parity-ppp.

In data set ppp, there are 40 counties with information about inflation difference

and their exchange rate changes. You are interested in finding the marginal

effect of inflation difference on exchange rate change.

Question 1:

Plot the exchange rate change v.s. inflation difference. Comment on it.

Question 2:

Estimate an OLS model for the relation between inflation difference and exchange

rate change (Notice that base on ppp theorem, inflation differnce should

be independent variable). Write down the model you are estimating.

Question 3:

Investigate the OLS assumptions base on the 4 plots we discussed at class.

Question 4:

A new data for a country shows that this country has −0.68 inflation difference.What

is your model’s prediction for exchange rate exchange?

1