Question

An economics study on job growth in a country after a revolution results in the data below. The x-value is the number of years after the revolution and the y-value is the percent of unemployment in the country each year.

x	y
8	6.3
11	7.7
14	8.6
17	9.0
20	14.0

Compute the least squares regression line modeling this data. What is the percent of unemployment in the country 0years after the revolution? Round your answer to two decimal places.

Answer 1

	x	y			xy
1	8	6.3	64	39.69	50.4
2	11	7.7	121	59.29	84.7
3	14	8.6	196	73.96	120.4
4	17	9	289	81	153
5	20	14	400	196	280
Total	70	45.6	1070	449.94	688.5

Using the least squares we have the regression equation

Where the slope =

=

   = 0.55667

y-intercept =

= (45.6-70*0.55667) / 5

   = 1.32667

Equation therefore is

y-intercept is the point where x = 0 it is like the starting point of Y.

Therefore when x = 0

The percent = 1.33