T-bills and inflation. Figure 10.10 (page 499) gives Excel output for the regression of the rate of return on Treasury bills against the rate of inflation during the same year. Exercises 10.57 through 10.59 use this output.
10.57 A significant relationship?
The output reports two tests of the null hypothesis that regressing on inflation does help to explain the return on T-bills. State the hypotheses carefully, give the two test statistics, show how they are related, and give the common -value.
10.57
or no linear relationship, or there is a linear relationship. .