Question

Consider the following table containing unemployment rates for a 10-year period.

Unemployment Rates

Year	Unemployment Rate (%)
1	4.1
2	5.8
3	8.2
4	5.6
5	11.2
6	5.6
7	8.4
8	12.1
9	9.2
10	8.1

Given the model

Estimated Unemployment Rate=β0+β1(Year)+εi,Estimated Unemployment Rate=β0+β1(Year)+εi,

write the estimated regression equation using the least squares estimates for β0β0 and β1β1. Round your answers to two decimal places.

Answer 1

Ans:

	Year	Unemployment Rate (%)
	1	4.1	4.1	1	16.81
	2	5.8	11.6	4	33.64
	3	8.2	24.6	9	67.24
	4	5.6	22.4	16	31.36
	5	11.2	56	25	125.44
	6	5.6	33.6	36	31.36
	7	8.4	58.8	49	70.56
	8	12.1	96.8	64	146.41
	9	9.2	82.8	81	84.64
	10	8.1	81	100	65.61
Total	55	78.3	471.7	385	673.07

slope,B1=(10*471.7-55*78.3)/(10*385-55^2)=0.4976

intercept,B0=(78.3-0.4976*55)/10=5.093