Q12. The coefficient standard error for the independent variable “% Construction Employment” under the relative employment instability model is closest to:

A)   0.3595.

B)   0.0818.

C)   2.2675.

Q13. Which of the following best describes how to interpret the R² for the employment growth rate model? Changes in the value of the:

A)   independent variables explain 28.9% of the variability of the employment growth rate.

B)   independent variables cause 28.9% of the variability of the employment growth rate.

C)   employment growth rate explain 28.9% of the variability of the independent variables.

答案和详解如下：

Q12. The coefficient standard error for the independent variable “% Construction Employment” under the relative employment instability model is closest to:

A)   0.3595.

B)   0.0818.

C)   2.2675.

Correct answer is B)         

The t-statistic is computed by t-statistic = slope coefficient / coefficient standard error. Therefore, the coefficient standard error =

= slope coefficient/the t-statistic = 0.1715/2.096 = 0.0818.

Q13. Which of the following best describes how to interpret the R² for the employment growth rate model? Changes in the value of the:

A)   independent variables explain 28.9% of the variability of the employment growth rate.

B)   independent variables cause 28.9% of the variability of the employment growth rate.

C)   employment growth rate explain 28.9% of the variability of the independent variables.

Correct answer is A)

The R² indicates the percent variability of the dependent variable that is explained by the variability of the independent variables. In the employment growth rate model, the variability of the independent variables explains 28.9% of the variability of employment growth. Regression analysis does not establish a causal relationship.