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Please show step-by-step. Thank you An analysis is conducted to estimate the demand for automobiles (y) based on cost (:61), the current unemployment rate ($2),

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An analysis is conducted to estimate the demand for automobiles (y) based on cost (:61), the current unemployment rate ($2), and the current interest rate (1133). The proposed linear model is: y = 130 +31% +5232 +53% +5 The data set is: Units sold in Cost in Unemployment Interest rate thousands (y) thousands ($1) rate (332) in % (333) 6.5 9.0 10.0 4.0 5.9 5.5 9.0 7.0 8.0 9.0 12.0 5.0 9.0 9.8 11.0 6.2 10.0 14.5 12.0 5.8 10.5 8.0 14.0 3.9 a) Fit the linear model b) What are the estimated variances of b0, b1, b2, and ()3? c) Suppose we want to test HUI/3025126220 What is the full model in this case? What is the reduced model? How do you test H0 at a 5% signicance level? How do you interpret the results of the test in a practical sense

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