Question

A panel of 68 economists was asked to predict the average unemployment rate for the upcoming year. The results of the survey follow: Unemployment Rate, % 10.210.410.610.811.011.211.4 Economists2472414125 On the basis of this survey, what does the panel expect the average unemployment rate to be next year? (Round your answer to two decimal places.) ______________%

Answer 1

Answer:

10.89%

Step-by-step explanation:

Data provided in the question:

Number of economist in the panel = 68

Unemployment Rate, % :   10.2    10.4    10.6    10.8    11.0    11.2    11.4

Economists :                         2         4         7       24       14      12       5

Now,

The average unemployment rate to be next year will be calculated using weighted average as:

= $\frac{\sum{\textup{(Number of economist}\times\textup{Unemployment Rate)}}}{\textup{Total number of economist}}$

or

= $\frac{(2\times10.2)+(4\times10.4)+(7\times10.6)+(24\times10.8)+(14\times11.0)+(12\times11.2)+(5\times11.4)}{68}$

or

= $\frac{20.4+41.6+74.2+259.2+154+134.4+57}{68}$

or

= $\frac{740.8}{68}$

or

= 10.89%

Hence,

The expected average unemployment rate to be next year by the panel will be 10.89%