FINC 645 - International Finance
FINC 645 - Page 2
6) Export Series
a) Select frequency: Yearly, Quarterly, or Monthly
i) Note: Not all data is reported quarterly or monthly.
b) Click export
c) Click sort by country
d) Click export
e) Open or save the output in Excel
Developing the Regression Model in Excel
1) Formatting the workbook
a) Insert a new worksheet in the to current workbook and name “Data_Sheet”
b) Within Data_Sheet use the Transpose function to convert row headings to column headings (transpose from vertical to horizontal)
c) Use the Transpose function to convert the years and time series from rows to columns
2) Evaluating the fit
a) Using the Scatter Plot charting feature, develop scatter plots for each independent variable to determine how the strength of the relationship between the independent and dependent variables.
b) Move scatter plots to new worksheet titled “Scatter Plot”.
c) Select the variables with the strongest correlations for inclusion in the model.
3) Executing the regression analysis
a) Goto “Datasheet” tab.
b) Use the Data Analysis function to set up the regression analysis
c) Select the exchange rate column for the Y input range.
d) Select the remaining columns for the X input range.
i) Note: X input columns must be adjacent to each other
e) Under output options, select New Worksheet Play. Name the worksheet “Test_Results”
f) Under residuals, select Residuals and Residual Plots.
g) Click OK to execute.
Obtaining Historical Exchange Rates for Non-U.S. Trading Partner
1) Goto the WCL homepage @ http://wcl.library.tamu.edu/
2) Select Business Database List.
a) Under the Finance section select Thomson One Banker
b) From the menu on the left side, select Market Awareness.
i) Select Currencies.
ii) Select source and target currencies.
iii) Select 10 years for time frame.
iv) Select Quarterly for frequency.
v) Click update.
vi) Click the Excel icon to download the data.
