The mean unemployment rate in January of each year from 1995 to 2004 is x = 5.06, with a standard deviation of sx = 1.2. The mean unemployment rate in June of each year for the same time frame is = 5.09, with a standard deviation of sy = 0.9. The correlation coefficient is r = 0.89.
Part A: Find the equation of the least-squares regression line for predicting June's unemployment rate from January's unemployment rate. Show your work. (3 points)
Part B: Use the regression line to predict the unemployment rate if January's rate is 4.3. Show your work. (3 points)
Part C: Find and interpret r-squared. (4 points)