Model Summaryc

Change Statistics

Adjusted R Std. Error of the R Square

Model R R Square Square Estimate Change F Change df1 df2 Sig. F Change

1 .884a .781 .765 4.00121 .781 49.838 1 14 .000

2 .941b .885 .867 3.00794 .104 11.773 1 13 .004

a. Predictors: (Constant), money supply

b. Predictors: (Constant), money supply, interest rate

c. Dependent Variable: foreign exchange rate

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients Correlations

Model B Std. Error Beta t Sig. Zero-order Partial Part

1 (Constant) 38.833 1.964 19.769 .000

money supply .002 .000 .884 7.060 .000 .884 .884 .884

2 (Constant) 32.342 2.400 13.477 .000

money supply .002 .000 .947 9.876 .000 .884 .939 .929

ionterest rate 1.066 .311 .329 3.431 .004 .146 .689 .323

a. Dependent Variable: foriegn exchange rate

The regression model

 Y = a + BX1+B2X2
Where, Y = Foreign exchange rate

X1 = money supply

X2 = interest rate

R2 = .885
Adjusted R2 = 0.867
Y = 32.342+ 0.002*X1+1.066*X2

INTERPRETATION:-

 B1 = .002 shows that 1 unit of change in money supply will leads 0.002 units of change in foreign
exchange rate.
 B2 = 1.066 one unit of change In interest rate will leads to 1.066 units of change in foreign
exchange rate.
 R2= 0.885 indicates that 88.5% variance in dependent variable can be explained by the
independent variables.
 Adjusted R2 = 0.867 indicates that if you add one more independent variable into the model
then what will be the value of R2 that means if we add one more dependent variable into the
model the efficiency of the model will be reduce and new model will only explain the variance of
86.7%.