The data provided in the table are for the full sample (84 observations for Q1Y2000-Q4Y2020), estimate the following regression: ut−ut−1=β1+β2(%Δyt)+ϵWhere ut is the unemployment rate at time t and yt is real GDP at time t (thus, %Δyt is the growth rate between t−1 and t.)Information: ΣXY = 0.0027124; ΣX2 =0.1215623; ΣX = 1.8349077; ΣY = 0.235; β^2 = -0.0297; B^1 = 0.0034 Statement of hypothesis: H0: β2 = 0 ; H1: β2 < 0 Question: Test the hypothesis that β2=0 against the hypothesis that β2<0 at alpha=0.01. Assuming a standard error of 0.063935, what is the test statistic and the critical value?

Answered: 0.0027124; ΣX2 =0.1215623; ΣX =…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The data provided in the table are for the full sample (84 observations for Q1Y2000-Q4Y2020), estimate the following regression: ut−ut−1=β1+β2(%Δyt)+ϵ

Where ut is the unemployment rate at time t and yt is real GDP at time t (thus, %Δyt is the growth rate between t−1 and t.)

Information: ΣXY = 0.0027124; ΣX² =0.1215623; ΣX = 1.8349077; ΣY = 0.235; β^2 = -0.0297; B^1 = 0.0034

Statement of hypothesis: H₀: β₂ = 0 ; H₁: β₂ < 0

Question: Test the hypothesis that β2=0 against the hypothesis that β2<0 at alpha=0.01. Assuming a standard error of 0.063935, what is the test statistic and the critical value?

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