Essential Statistics
2nd Edition
ISBN: 9781259570643
Author: Navidi
Publisher: MCG
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Chapter 11, Problem 2CS
To determine
Find the least-square regression line for predicting unemployment y from inflation x.
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The table shows the total personal income in a country (in billions of
dollars) for selected years from 1960 and projected to 2024. Complete
parts (a) and (b) below.
….
Year
1960
1970
1980
y=(x²+x+
(Type integers or decimals rounded to three decimal places as needed.)
1990
2000
Income
($ billions)
Year
411.7
2008
838.6
2014
2307.9 2018
4878.7 2024 22685.5
8429.9
Income
($ billions)
12100.8
14728.6
19129.7
a. These data can be modeled by a quadratic function. Write the equation of this function, with x equal to the
number of years after 1960.
b. In what year does the model predict the total personal income will reach $24.772 trillion?
The unrounded model predicts the total personal income will reach $24.772 trillion in
The November 24, 2001, issue of The Economist published economic data for 15
industrialized nations. Included were the percent changes in gross domestic product (GDP),
industrial production (IP), consumer prices (CP), and producer prices (PP) from Fall 2000
to Fall 2001, and the unemployment rate in Fall 2001 (UNEMP). An economist wants to
construct a model to predict GDP from the other variables. A fit of the model
GDP = , + P,IP + 0,UNEMP + f,CP + P,PP + €
yields the following output:
The regression equation is
GDP = 1.19 + 0.17 IP + 0.18 UNEMP + 0.18 CP – 0.18 PP
Predictor
Coef SE Coef
тР
Constant
1.18957 0.42180 2.82 0.018
IP
0.17326 0.041962 4.13 0.002
UNEMP
0.17918 0.045895 3.90 0.003
CP
0.17591 0.11365 1.55 0.153
PP
-0.18393 0.068808 -2.67 0.023
Predict the percent change in GDP for a country with IP = 0.5, UNEMP = 5.7, CP =
3.0, and PP = 4.1.
a.
b.
If two countries differ in unemployment rate by 1%, by how much would you predict
their percent changes in GDP to differ, other…
Q. Table gives data on gold prices, the Consumer Price Index (CPI), and the New York Stock Exchange (NYSE) Index for the United States for the period 1974 –2006. The NYSE Index includes most of the stocks listed on the NYSE, some 1500-plus.
a. Plot in the same scattergram gold prices, CPI, and the NYSE Index.
b. An investment is supposed to be a hedge against inflation if its price and /or rate of return at least keeps pace with inflation. To test this hypothesis, suppose you decide to fit the following model, assuming the scatterplot in (a) suggests that this is appropriate:
Gold pricet = β1 + β2 CPIt + ut
NYSE indext = β1 + β2 CPIt + ut
Note that if beta2 = 1 the response exactly grows with CPI
Thank you!
Chapter 11 Solutions
Essential Statistics
Ch. 11.1 - Prob. 1CYUCh. 11.1 - Prob. 2CYUCh. 11.1 - Prob. 3CYUCh. 11.1 - Prob. 4CYUCh. 11.1 - Prob. 5CYUCh. 11.1 - Prob. 6CYUCh. 11.1 - Prob. 7CYUCh. 11.1 - Prob. 8CYUCh. 11.1 - Prob. 9ECh. 11.1 - Prob. 10E
Ch. 11.1 - Prob. 11ECh. 11.1 - Prob. 12ECh. 11.1 - Prob. 13ECh. 11.1 - Prob. 14ECh. 11.1 - Prob. 15ECh. 11.1 - Prob. 16ECh. 11.1 - Prob. 17ECh. 11.1 - Prob. 18ECh. 11.1 - Prob. 19ECh. 11.1 - Prob. 20ECh. 11.1 - Prob. 21ECh. 11.1 - Prob. 22ECh. 11.1 - Prob. 23ECh. 11.1 - Prob. 24ECh. 11.1 - Prob. 25ECh. 11.1 - Prob. 26ECh. 11.1 - Prob. 27ECh. 11.1 - In Exercises 25–30, determine whether the...Ch. 11.1 - Prob. 29ECh. 11.1 - Prob. 30ECh. 11.1 - Prob. 31ECh. 11.1 - Prob. 32ECh. 11.1 - 33. Pass the ball: The NFL Scouting Combine is an...Ch. 11.1 - 34. Carbon footprint: Carbon dioxide (CO2) is...Ch. 11.1 - 35. Foot temperatures: Foot ulcers are a common...Ch. 11.1 - Prob. 36ECh. 11.1 - Prob. 37ECh. 11.1 - Prob. 38ECh. 11.1 - Prob. 39ECh. 11.1 - Prob. 40ECh. 11.1 - Prob. 41ECh. 11.1 - Prob. 42ECh. 11.1 - Prob. 43ECh. 11.2 - 1. The following table presents the percentage of...Ch. 11.2 - 2. At the final exam in a statistics class, the...Ch. 11.2 - 3. For each of the following plots, interpret the...Ch. 11.2 - Prob. 4CYUCh. 11.2 - Prob. 5ECh. 11.2 - In Exercises 5–7, fill in each blank with the...Ch. 11.2 - Prob. 7ECh. 11.2 - Prob. 8ECh. 11.2 - In Exercises 8–12, determine whether the statement...Ch. 11.2 - Prob. 10ECh. 11.2 - Prob. 11ECh. 11.2 - Prob. 12ECh. 11.2 - Prob. 13ECh. 11.2 - Prob. 14ECh. 11.2 - Prob. 15ECh. 11.2 - Prob. 16ECh. 11.2 - Prob. 17ECh. 11.2 - Prob. 18ECh. 11.2 - Prob. 19ECh. 11.2 - Prob. 20ECh. 11.2 - Prob. 21ECh. 11.2 - Prob. 22ECh. 11.2 - Prob. 23ECh. 11.2 - Prob. 24ECh. 11.2 - Prob. 25ECh. 11.2 - Prob. 26ECh. 11.2 - 27. Blood pressure: A blood pressure measurement...Ch. 11.2 - Prob. 28ECh. 11.2 - 29. Interpreting technology: The following display...Ch. 11.2 - Prob. 30ECh. 11.2 - Prob. 31ECh. 11.2 - Prob. 32ECh. 11.2 - Prob. 33ECh. 11.2 - Prob. 34ECh. 11.2 - Prob. 35ECh. 11.3 - Prob. 1CYUCh. 11.3 - Prob. 2CYUCh. 11.3 - Prob. 3CYUCh. 11.3 - Prob. 4CYUCh. 11.3 - Prob. 5CYUCh. 11.3 - Prob. 6CYUCh. 11.3 - Prob. 7ECh. 11.3 - Prob. 8ECh. 11.3 - Prob. 9ECh. 11.3 - Prob. 10ECh. 11.3 - Prob. 11ECh. 11.3 - Prob. 12ECh. 11.3 - Prob. 13ECh. 11.3 - Prob. 14ECh. 11.3 - Prob. 15ECh. 11.3 - Prob. 16ECh. 11.3 - Prob. 17ECh. 11.3 - Prob. 18ECh. 11.3 - Calories and protein: The following table presents...Ch. 11.3 - Prob. 20ECh. 11.3 - Butterfly wings: Do larger butterflies live...Ch. 11.3 - Blood pressure: A blood pressure measurement...Ch. 11.3 - Prob. 23ECh. 11.3 - Prob. 24ECh. 11.3 - Getting bigger: Concrete expands both horizontally...Ch. 11.3 - Prob. 26ECh. 11.3 - Prob. 27ECh. 11.3 - Prob. 28ECh. 11.3 - Prob. 29ECh. 11.3 - Prob. 30ECh. 11.3 - Prob. 31ECh. 11.4 - Prob. 1CYUCh. 11.4 - Prob. 2CYUCh. 11.4 - Prob. 3ECh. 11.4 - Prob. 4ECh. 11.4 - Prob. 5ECh. 11.4 - Prob. 6ECh. 11.4 - Prob. 7ECh. 11.4 - Prob. 8ECh. 11.4 - Prob. 9ECh. 11.4 - Prob. 10ECh. 11.4 - Calories and protein: Use the data in Exercise 19...Ch. 11.4 - Prob. 12ECh. 11.4 - Butterfly wings: Use the data in Exercise 21 in...Ch. 11.4 - Prob. 14ECh. 11.4 - Prob. 15ECh. 11.4 - Prob. 16ECh. 11.4 - Prob. 17ECh. 11.4 - Prob. 18ECh. 11.4 - Prob. 19ECh. 11.4 - Prob. 20ECh. 11.4 - Prob. 21ECh. 11 - Prob. 1CQCh. 11 - Prob. 2CQCh. 11 - Prob. 3CQCh. 11 - Prob. 4CQCh. 11 - Prob. 5CQCh. 11 - Prob. 6CQCh. 11 - Prob. 7CQCh. 11 - Prob. 8CQCh. 11 - Prob. 9CQCh. 11 - Prob. 10CQCh. 11 - Prob. 11CQCh. 11 - Prob. 12CQCh. 11 - Prob. 13CQCh. 11 - Prob. 14CQCh. 11 - Prob. 15CQCh. 11 - Prob. 1RECh. 11 - Prob. 2RECh. 11 - Prob. 3RECh. 11 - Prob. 4RECh. 11 - Prob. 5RECh. 11 - Prob. 6RECh. 11 - Prob. 7RECh. 11 - Prob. 8RECh. 11 - Prob. 9RECh. 11 - Prob. 10RECh. 11 - Prob. 11RECh. 11 - Prob. 12RECh. 11 - Prob. 13RECh. 11 - Interpret technology: The following TI-84 Plus...Ch. 11 - Prob. 15RECh. 11 - Prob. 1WAICh. 11 - Prob. 2WAICh. 11 - Prob. 3WAICh. 11 - Prob. 4WAICh. 11 - Prob. 5WAICh. 11 - Prob. 6WAICh. 11 - Prob. 7WAICh. 11 - Prob. 1CSCh. 11 - Prob. 2CSCh. 11 - Prob. 3CSCh. 11 - Prob. 4CSCh. 11 - Prob. 5CSCh. 11 - Prob. 6CSCh. 11 - Prob. 7CSCh. 11 - Prob. 8CSCh. 11 - Prob. 9CSCh. 11 - Prob. 10CSCh. 11 - Prob. 11CS
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