Source: Bureau of Labor Statistics We will investigate some methods for predicting unemployment. First, we will try to predict the unemployment rate from the inflation rate. 1. Use your calculator to construct the scatterplot of inflation (x) versus unemployment (y). Does there appear to be a linear association?
2. Compute the least-squares line for predicting unemployment from inflation.
3. Predict the unemployment in a year when inflation is 3.0%
4. What does the correlation coefficient say about the association between inflation and unemployment? What is the correlation coefficient? ​