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In a regression, x is the unemployment rate (measured in %, with a value of 10 indicating a 10% unemployment rate) and y is the rate of wage growth (in %, with a value of 1 indicating that wages grew 1% last year). Which of the following is a correct interpretation for the b1 in the regression equation:
y= b0 + b1x
a) When the unemployment rate is 1 percentage point higher, on average wage growth is b1 percentage points higher
b) If wage growth is 1% then the unemployment rate increases by b1 %
c) the unemployment rate increases by b1 percentage points for every one percentage point increase in wage growth
d) The correlation coefficient between the unemployment rate and wage growth is b1
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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