The state of Wisconsin is interested in predicting their revenue from the state income tax. The dependent variable is the amount of revenue from the state income tax in millions. X1 is a time variable that is coded 1 for 1985 and increases by one for each year. X2 is the unemployment rate in Wisconsin. A regression produces the following result:
 = 507 + 89.4X1 – 63.4X2
R2 = .99 sb = 9.1 11.5 Sy|x = 32.4
Interpret this regression. Are the relationships significant? If the unemployment rate for 2015 is projected to be 6.2%, what is your best guess as the income tax revenue.