MTH521 - A2 Ana Fonseca Ana Fonseca Ana Fonseca

1.
2.
Let,
y = Unemployment
x = Inflation
The least square line for predicting unemployment from inflation is given by,
y = 6.1932 – 0.12 * x
3.
We have to predict unemployment for inflation equal to 3
y = 6.1932 – 0.12 * 3
y = 5.85
Predicted unemployment in a year when inflation is 3.0% is 5.85.
4.
Correlation coefficient between inflation and unemployment is -0.0668
5.
6.
Let,
y = Next Year’s Unemployment
x = This Year’s Inflation
The least square line...