Question: 8 Consider the following regression output:

\(\begin{aligned} & {{{\hat{Y}}}_{t}}=0.2033+0.6560{{X}_{t}} \\ & se=(0.0976)\,\,\,(0.1961) \\ & {{r}^{2}}=0.397,\,\,RSS=0.0544,\,\,\,ESS=0.0358 \\ \end{aligned}\)

where F=Labor Force Participation Rate (LFPR) of women in 1972 and X=LFPR of women in 1968. The regression results were obtained from a sample of 19 cities in the United States.

A. How do you interpret this regression?

B. Test the hypothesis: Ho: B2=1 against H1: B2>1. Which test do you use? And why? What are the underlying assumptions of the test(s) you use? Hint: think about the general formula for calculating the estimated t statistic.