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STATS Unemployment -The cost of unemployment is a major issue

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Question;2. The cost of unemployment is a major issue both at the state and federal levels. What drives the cost is not only the number of unemployed but also the length of unemployment for each person. The longer a person is unemployed, the higher the cost to governments and businesses. To address the factors driving the length of unemployment for the manufacturing sector, data was collected on the number of weeks a person is unemployed due to a layoff along with a series of independent variables as shown below.Edu: The number of years of education.Married: An indicator of whether (Y) or not (N) a person is married.Head: An indicator of whether (Y) or not (N) the person is the head of a household.Tenure: The number of years on the most recent job.Manager: An indicator of whether (Y) or not (N) the person was in a management position. Sales: An indicator of whether (Y) or not (N) the person was in a sales occupation.Age: The current age (in years) of the individual workerThe table shown below is data for 50 displaced workers. This data set is also on Canvass (Exam folder) in Minitab format (LAYOFFS.MTW) so you don?t have to re-enter the data.(a) Develop an estimated regression model to predict length of unemployment using all of the variables.(b) State the hypotheses one needs to test for significance of the model developed in part (a).(c) Is the model developed in (a) significant at a 5% significance level? Explain.(d)State and interpret the R2 value.(e) Conduct a residual analysis and comment on the results.(f) Are all of the variables in the full model significant? If not, which ones are not significant? Explain.(g) Is there any problem with multicollinearity? Explain. If so what should one do about it?(h) Develop your own model which you think is the most appropriate predictor of weeks of unemployment. Explain the results and why you think this is the best model.(i) Using your best model, what would be the estimated length of unemployment a person with the following characteristics: Age = 40, Education level = 16 years, Married, Head of household, Tenure = 18 years, Not a manager, Not in a sales occupation.(j) Develop and interpret a 95% confidence interval and prediction interval for the individual described in part (i) above.(k) How might the results of your model be used to help both state and federal government deal with the length of unemployment problem?Weeks Age Educ Married HeadTenureManager Sales37 30 14 Y Y 1 N N62 27 14 Y N 6 N N49 32 10 N Y 11 N N73 44 11 Y N 2 N N8 21 14 Y Y 2 N N15 26 13 Y N 7 Y N52 26 15 Y N 6 N N72 33 13 N Y 6 N N11 27 12 Y Y 8 N N13 33 12 N Y 2 N N39 20 11 Y N 1 N N59 35 7 Y Y 6 N N39 36 17 N Y 9 Y N44 26 12 Y Y 8 N N56 36 15 N Y 8 N N31 38 16 Y Y 11 N Y62 34 13 N Y 13 N N25 27 19 Y N 8 N N72 44 13 Y N 22 N N65 45 15 Y Y 6 N N44 28 17 N Y 3 N Y49 25 10 Y Y 1 N N80 31 15 Y N 12 N N7 23 15 Y N 2 N N14 24 13 Y Y 7 N N94 62 13 N Y 8 N N48 31 16 Y N 11 N N82 48 18 N Y 30 N N50 35 18 Y Y 5 N N37 33 14 N Y 6 N Y62 46 15 N Y 6 N N37 35 8 N Y 6 N N40 32 9 Y Y 13 N N16 40 17 Y N 8 Y N34 23 12 Y Y 1 N N4 36 16 N Y 8 N Y55 33 12 Y N 10 N Y39 32 16 N Y 11 N N80 62 15 Y N 16 N Y19 29 14 Y Y 12 N N98 45 12 Y N 17 N N30 38 15 N Y 6 N Y22 40 8 Y Y 16 N Y57 42 13 Y N 2 Y N64 45 16 Y Y 22 N N22 39 11 Y Y 4 N N27 27 15 Y N 10 N Y20 42 14 Y Y 6 Y N30 31 10 Y Y 8 N N23 33 13 Y Y 8 N N

 

Paper#61336 | Written in 18-Jul-2015

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