Construct a confidence interval for ß

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Reference no: EM131529986

Question: The following are data on

y = quit rate per 100 employees in manufacturing

x = unemployment rate The data are for the United States and cover the period 1960-1972.

(a) Calculate a regression of y on x.

y = α + βx + u

(b) Construct a 95% confidence interval for β.

(d) Construct a 90% confidence interval for (σ2 = var(u).

(e) What is likely to be wrong with the assumptions of the classical normal linear model in this case? Discuss.

Reference no: EM131529986

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