
The table below contains data about the yearly unemployment rate and poverty rate for Free State Province for a period of 10 years (from 2010 - 2019). Assume that unemployment rate and poverty rate are
years | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Unemployment rate | 3.5 | 4.4 | 5.2 | 2.8 | 3.9 | 4.0 | 3.8 | 3.3 | 4.8 | 3.1 |
Poverty rate | 5.1 | 6.3 | 7.5 | 5.3 | 7.5 | 6.8 | 5.3 | 6.0 | 6.4 | 4.2 |
a. Use ordinary least squares (OLS) to fit the sample regression
b. Estimate and interpret the coefficient of determination, R^2.
c. Does the poverty rate increase as unemployment increases? In other words, is the coefficient of unemployment rate (b1) positive? Test at the 5% level.
d. Estimate a 90% prediction interval for poverty rate, if unemployment rate =4.

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