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# (Solved): Can someone explain why the 0.23 (Beta hat) turns negative? 15) You have collected data for the 5 ...

Can someone explain why the 0.23 (Beta hat) turns negative?

15) You have collected data for the 50 U.S. states and estimated the following relationship between the change in the unemployment rate from the previous year ( and the growth rate of the respective state real GDP . The results are as follows Assuming that the estimator has a normal distribution, the confidence interval for the slope is approximately the interval A) B) C) D) Answer: D The estimated value of the coefficient is 0.23 , with a standard error of 0.04 . Using the standard normal approximation, the confidence interval for is required to be calculated. In the standard normal probability distribution table, the -value corresponding to is 1.96 ; therefore, the confidence interval for can be calculated as follows: Therefore, the confidence interval for is from -0.31 and -0.15 ; is correct.

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