Interpret the following results with (UR) uemployment rate as dependent variable and (INF) inflation as the independent variable. Dependent Variable: URMethod: Least SquaresDate: 10/30/22 Time: 11:50Sample: 1991 2021Included observations: 31VariableINFR-squaredAdjusted R-squaredS.E. of regressionSum squared residLog likelihoodDurbin-Watson statCoefficient2.749079Std. Error0.488019t-Statistic5.6331370.251048 Mean dependent var0.251048 S.D. dependent var36.76557Akaike info criterion40551.21 Schwarz criterion-155.2203 Hannan-Quinn criter.0.537950Prob.0.000030.7434542.4829210.0787310.1249810.09381

Answered: Interpret the following results with…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Interpret the following results with (UR) uemployment rate as dependent variable and (INF) inflation as the independent variable.

Dependent Variable: UR
Method: Least Squares
Date: 10/30/22 Time: 11:50
Sample: 1991 2021
Included observations: 31
Variable
INF
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
Coefficient
2.749079
Std. Error
0.488019
t-Statistic
5.633137
0.251048 Mean dependent var
0.251048 S.D. dependent var
36.76557
Akaike info criterion
40551.21 Schwarz criterion
-155.2203 Hannan-Quinn criter.
0.537950
Prob.
0.0000
30.74345
42.48292
10.07873
10.12498
10.09381

Expert Solution

Step 1

First of all, we have to know the regression equation which is used in econometrics or stats for knowing the relationship between dependent and independent variable. Now to get the relationship, we use least square method which actually shows the best fit to the model i.e. low sum of squared residual.

In this case, least square method is used and we have to get a relationship between unemployment rate as dependent variable and inflation as the independent variable.

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