(i) Compare these regression results with thise given in Eq. (a).
CM^i = 263.6416 − 0.0056 PGNPi − 2.2316 FLRi
se = (11.5932) (0.0019) (0.2099)
t = (22.7411) (−2.8187) (−10.6293) (a)
p value = (0.0000)* (0.0065) (0.0000)*
R2= 0.7077, AdjustedR2= 0.6981
What changes do you see? And how do you account for them?
(ii) Is it worth adding the variable TFR to the model? Why?
(iii) Since all the individual t coefficients are statistically significant, can
we say that we do not have a collinearity problem in the present case?