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

10.89%

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}*\textup{Unemployment Rate)}}}{\textup{Total number of economist}}`

or

=
`((2*10.2)+(4*10.4)+(7*10.6)+(24*10.8)+(14*11.0)+(12*11.2)+(5*11.4))/(68)`

or

=
`(20.4+41.6+74.2+259.2+154+134.4+57)/(68)`

or

=
`(740.8)/(68)`

or

= 10.89%

Hence,

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