Assume a researcher runs a model with erford, i.e., the excess return on the stock of the company Ford, as dependent variable and the following independent variables: ersandp, dprod, dcredit, dinflation, dmoney, dspread, rterm. The data is monthly data, and the regression model is estimated over the sample March 2002 to February 2018. The researcher presents you with the Stata regression output, as shown below: (a) The researcher would like to know which of the variables are statistically significant. Explain how you can evaluate the statistical significance of the individual variables and state those that are statistically significant including at which significance level. What does it mean if a variable is not statistically significant? (20%) (b) The dspread variable has an associated t-ratio of -2.32, as shown on the regression output. If this value would not have been given, could you have calculated it yourself using the other information provided in the regression output. Explain why or why not. (10%) (c) At the top right corner of the output, the regression F-statistic is reported as F(7, 184)=17.46. (i) What type of distribution does the regression F-statistic follow and what significance do the values 7 and 184 have? (15%) _cons -.3419254 .9128869 -0.37 0.708 -2.142997 1.459146 rterm 4.424608 3.397736 1.30 0.194 -2.278922 11.12814 dspread -15.28386 6.585778 -2.32 0.021 -28.2772 -2.290508 dmoney .0076757 .024172 0.32 0.751 -.0400143 .0553657 dinflation -4.39202 2.089208 -2.10 0.037 -8.513904 -.2701361 dcredit -.0441125 .0413729 -1.07 0.288 -.1257388 .0375138 dprod -3.30067 1.169675 -2.82 0.005 -5.608368 -.9929717 ersandp 1.804004 .1984742 9.09 0.000 1.412427 2.195582 erford Coefficient Std. err. t P>|t| [95% conf. interval] Total 34734.3532 191 181.855252 Root MSE = 10.65 Adj R-squared = 0.3763 Residual 20870.3045 184 113.425568 R-squared = 0.3991 Model 13864.0487 7 1980.57839 Prob > F = 0.0000 F(7, 184) = 17.46 Source SS df MS Number of obs = 192 . regress erford ersandp dprod dcredit dinflation dmoney d