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A study is conducted to estimate the demand for housing (y) based on current interest rate X1 and the rate of unemployment. The data in Table 8.6.1 are obtained.
(a) Fit the multiple regression model y = β0 + β1x1 + β1x2 + ε.
Table 8.6.1
Units sold
Interest rate (%)
Unemployment rate (%)
65
9.0
10.0
59
9.3
8.0
80
8.9
8.2
90
9.1
7.7
100
7.1
105
8.7
7.2
(b) Test whether the model is signi?cant.
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