Question

(2)The following estimated regression model relates labor force participation rate, L, to unemployment rate, U, and...

(2)The following estimated regression model relates labor force participation rate, L, to unemployment
rate, U, and average hourly earnings, E.
^
L = 80.9013 - 0.6713 U – 1.4042 E
Se 4.7561 0.0827 0.6086
R squared = 0.7727 n = 23 F = 34.073
(a)Comment on the appropriateness of the signs of the coefficients.
(b)Conduct a test of statistical significance, at the 5% level, for the coefficient of unemployment.
(c)Conduct a test of overall statistical significance, at the 1% level, for the explanatory variables of the
model.

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