An economist wishes to examine the relationship between robberies, literacy and unemployment for 17 countries. The...

Transcribed Image Text:

An economist wishes to examine the relationship between robberies, literacy and unemployment for 17 countries. The results of the analysis are below. SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total Intercept % of adults with high literacy Unemployment Rate 0.840710083 0.706793443 0.664906792 170.9392328 df 17 SS MS 2 986121.372 493060.686 16.87395453 14 409083.0985 29220.22132 16 1395204.471 Coefficients 4.396246839 17.5922768 30.15174387 t Stat P-value Standard Error 114.4345878 0.038417116 0.969897562 6.56977385 2.677759874 0.018024335 7.97684647 3.779907759 0.002029783 Significance F 0.000186301 Lower 95% Upper 95% -241.0415336 249.834027 3.5015133 31.6830403 13.04310975 47.260378 (a) Write the multiple regression equation (2 marks) (b) Interpret the meaning of the coefficient of determination (2 marks) (c) Write down another potential independent variable that could be included in the analysis. (1 mark) (d) Interpret the meaning of slopes b₁ and b2, (2 marks)) (e) Predict the number of robberies for a country with a literacy rate of 25% and unemployment rate of 10%. (2 marks) (f) Using an F-Test, test the overall model at a 5% level of significance. (Use the hypothesis testing steps) (3 marks) (g) Determine which of the independent variables are significant at the 5% level of significance. (use t tests for each coefficient). (3 marks) An economist wishes to examine the relationship between robberies, literacy and unemployment for 17 countries. The results of the analysis are below. SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total Intercept % of adults with high literacy Unemployment Rate 0.840710083 0.706793443 0.664906792 170.9392328 df 17 SS MS 2 986121.372 493060.686 16.87395453 14 409083.0985 29220.22132 16 1395204.471 Coefficients 4.396246839 17.5922768 30.15174387 t Stat P-value Standard Error 114.4345878 0.038417116 0.969897562 6.56977385 2.677759874 0.018024335 7.97684647 3.779907759 0.002029783 Significance F 0.000186301 Lower 95% Upper 95% -241.0415336 249.834027 3.5015133 31.6830403 13.04310975 47.260378 (a) Write the multiple regression equation (2 marks) (b) Interpret the meaning of the coefficient of determination (2 marks) (c) Write down another potential independent variable that could be included in the analysis. (1 mark) (d) Interpret the meaning of slopes b₁ and b2, (2 marks)) (e) Predict the number of robberies for a country with a literacy rate of 25% and unemployment rate of 10%. (2 marks) (f) Using an F-Test, test the overall model at a 5% level of significance. (Use the hypothesis testing steps) (3 marks) (g) Determine which of the independent variables are significant at the 5% level of significance. (use t tests for each coefficient). (3 marks)

Answer rating: 100% (QA)

a The multiple regression equation can be written as Robberies 4396 17592 of adults with high literacy 30152 Unemployment Rate b The coefficient of determination Rsquared is a measure of how well the ... View the full answer