Question: For a simple linear regression analysis attempting to relate consumer confidence (y) to the unemployment rate (x), the following data are available: Show the data

For a simple linear regression analysis attempting to relate consumer confidence (y) to the unemployment rate (x), the following data are available:

Show the data in a scatter diagram and use the least squares criterion to find the slope (b) and the intercept (a) for the best fitting line. Sketch the least squares line in your scatter diagram. Use the line to predict the change in the consumer price index that would be associated with a two point jump in the unemployment rate.

Unemployment Rate (%) Consumer Confidence Index 100 120

Step by Step Solution

★★★★★

3.34 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

x y xy x 2 5 100 500 25 7 60 420 49 4 120 480 16 8 80 640 64 S ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

486-M-S-L-R (3013).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

In a simple linear regression analysis attempting to link years of work experience (x) to salary (y), the following output was produced. Notice that some of the entries in the table are missing. Fill...

In a simple linear regression analysis attempting to link an independent variable x (average hours per week that a CEO spends at work) to a dependent variable y (size of a CEOs house), the following...

In a simple linear regression analysis attempting to link independent variable x (college GPA) to dependent variable y (starting salary), the following ANOVA table was produced. Can the sample...

Of interest to many economists is the connection between mortgage interest rates and home sales. For a simple linear regression analysis attempting to link the mortgage interest rate (x) to new home...

Running head: SEXUAL EDUCATION MODELS IN THE UNITED STATES Sexual Education Models in the United States and their Impact on Sexual Attitudes and Behaviors DePaul University 1 SEXUAL EDUCATION MODELS...

latthhuu... please answer all the questions. i will not accept even if one step miss. thank you. Q1: \fA B C D E F G H Shipments and Completion Time W N - Date: June 2003 Day Completion time (hours)...

lathu please answer the all. please explain each (even small) steps in detail. thank you. please dont give wrong answer. i will not accept it. q1: \fA B C D E F G H Shipments and Completion Time W N...

Hello, I need help with these stat problems please Problem 1: Appropriateness of Inference For the following scenarios, answer the questions for each part. In each part, the underlined text is the...

FIN 670: Case 1 Marriot Cost of Capital The primary objective of this case is to estimate and analyze the cost of capital for a firm and non-publicly traded divisions with differing risk...

SIMPLE LINEAR REGRESSION ANALYSIS Reading Computer Printout and Interpret the Results 1 . Assume a sample is taken of six households asking for the levels of income (X) and consumption (Y) in...

Water at 25C, 1 bar is drawn from a mountain lake 1 km above a valley and allowed to flow through a hydraulic turbine-generator to a pond on the valley floor. For operation at steady state, determine...

A dart leaves the barrel of a blowgun at a speed v. The length of the blowgun barrel is L. Assume that the acceleration of the dart in the barrel is uniform. a. Show that the dart moves inside the...

There are two main education tax credits available to students - the American Opportunities Credit and the Lifetime Education Credit. Which of the following situations will allow the person to claim...

What is a partnership?

Home values tend to increase over time under normal conditions, but the recession of 2008 and 2009 has reportedly caused the sales price of existing homes to fall nationwide (BusinessWeek, March 9,...

Cond Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of 37...

show step by step please. (Security market line) James Fromholtz is considering whether to invest in a newly formed investment fund. The fund's investment objective is to acquire home mortgage...

Course Project 1 - Brainstorming They will provide the roadmap and specific examples for how to complete your work. The Course Project consists of a Needs Assessment, an Action Plan based on what you...

help ASAP please!! sustainable growth As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting growth model helos a firm asseks how apidly it can...