In general, as the economy grows, unemployment rate decreases. We will use a random sample of 10 periods to take a closer look at the Linear Regression Model for economic growth (X) and change in the unemployment rate (Y). The data are given below. x y 5.432 -1.05 2.441 -0.023 -1.024 0.006 -1.97 0.606 0.509 0.676 -1.87 1.738 -4.508 1.733 -3.375 1.744 -5.249 2.016 -10.706 2.52 1. The Regression Analysis is used here because ____there are two independent samples ____there are matched pairs data ____there are more than two means to compare _____there are data for two numerical variables and the goal is to describe the relationship between those two. 2. Use Excel to compute correlation between the economic growth and the change in the unemployment rate. Correlation = ________________(Rounded to 4 decimal places) 3. Based on your regression analysis in Excel, write the equation of the regression line. The equation of the regression line is (please round to 4 decimal places): y=___________ + or - _________x 4. Fill in the blanks of the following statements to interpret the slope and intercept in context. Enter the numbers rounded to 4 decimal places properly. When the a. economic growth increases (goes up) by 1, b. change in the unemployment rate the average (or expected) a. change in the unemployment rate a. decrease (goes down) by _______________. b. economic growth b. increases (goes up) 5. When the economic growth is zero, the average (or expected) change in the unemployment rate is_____________. 6. Compute and provide the predicted change in unemployment rate when the economic growth is -5 (rounded to 4 decimal places)_________________. 7. Do the data provide strong evidence that the economic growth and the change in the unemployment rate has a linear relationship? Provide the p-value to test the significance of the model (rounded to 4 decimal places). P-value =___________. At 0.06 significance level, there is a. enough b. not enough evidence to show that a significant straight-line relationship exists between the economic growth and the change in the unemployment rate. 8. What proportion of variation in the Y (change in unemployment rate) is explained by the fitted model? (rounded to 4 decimal places)___________________.
In general, as the economy grows, unemployment rate decreases.
We will use a random sample of 10 periods to take a closer look at the Linear Regression Model for economic growth (X) and change in the unemployment rate (Y).
The data are given below.
| x | y |
|---|---|
| 5.432 | -1.05 |
| 2.441 | -0.023 |
| -1.024 | 0.006 |
| -1.97 | 0.606 |
| 0.509 | 0.676 |
| -1.87 | 1.738 |
| -4.508 | 1.733 |
| -3.375 | 1.744 |
| -5.249 | 2.016 |
| -10.706 | 2.52 |
1. The
____there are two independent samples
____there are matched pairs data
____there are more than two means to compare
_____there are data for two numerical variables and the goal is to describe the relationship between those two.
2. Use Excel to compute
Correlation = ________________(Rounded to 4 decimal places)
3. Based on your regression analysis in Excel, write the equation of the regression line.
The equation of the regression line is (please round to 4 decimal places): y=___________ + or - _________x
4. Fill in the blanks of the following statements to interpret the slope and intercept in context. Enter the numbers rounded to 4 decimal places properly.
When the a. economic growth increases (goes up) by 1,
b. change in the unemployment rate
the average (or expected) a. change in the unemployment rate a. decrease (goes down) by _______________.
b. economic growth b. increases (goes up)
5. When the economic growth is zero, the average (or expected) change in the unemployment rate is_____________.
6. Compute and provide the predicted change in unemployment rate when the economic growth is -5 (rounded to 4 decimal places)_________________.
7. Do the data provide strong evidence that the economic growth and the change in the unemployment rate has a linear relationship?
Provide the p-value to test the significance of the model (rounded to 4 decimal places). P-value =___________.
At 0.06 significance level, there is a. enough b. not enough evidence to show that a significant straight-line relationship exists between the economic growth and the change in the unemployment rate.
8. What proportion of variation in the Y (change in unemployment rate) is explained by the fitted model? (rounded to 4 decimal places)___________________.
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