Dependent Variable: INTEREST Method: Least Squares Date: 08/08/20 Time: 17:38 Sample: 2010M01 2019M12 Included observations: 120 Variable с UNEMP R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient Std. Error 1-Statistic Prob. 9.586787 1.478492 6.484167 0.0000 -1.232859 0.267930 -4.601419 0.0000 0.152135 Mean dependent var 0.144949 S.D. dependent var 1.105708 Akaike info criterion 144.2656 Schwarz criterion -181.3225 Hannan-Quinn criter. 21.17306 Durbin-Watson stat 0.000011 2.799500 1.195761 3.055375 3.101833 3.074242 0.028137 The above is the regression result between the Australian monthly unemployment rate (UNEMP, independent variable) and monthly interest rate (INTEREST, dependent variable). Both data series are in percentages. Which statement is incorrect about the result? Select one: O a. The sum of squared residuals is 0.1521 Ob. The estimate of error variance is 1.22 O c. If the unemployment rate is 0, the interest rate is expected to be 9.59% O d. If the unemployment rate goes up by 1%, the interest rate is expected to decrease by 1.23%.

The independent variable is monthly unemployment rate, UNEMP and the dependent variable is interest rate, INTEREST.