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Economist A.W. Phillips was one of the first economists to present compelling evidence  of the correlation between unemployment and wage inflation. Since wages and salaries  are a major input cost for companies, rising wages should lead to higher prices for  products and services in an economy, ultimately pushing the overall inflation rate higher.  As a result, Phillips graphed the relationship between general price inflation and  unemployment, rather than wage inflation. Data on unemployment (independent) and  inflation (dependent) from the Federal Reserve is on the Excel workbook.  a) Find the equation for the regression line for this data. b) Find the correlation coefficient and R2 . c) Using the data, is the correlation statistically significant at the 1% level?   please do it in excel

Economist A.W. Phillips was one of the first economists to present compelling evidence  of the correlation between unemployment and wage inflation. Since wages and salaries  are a major input cost for companies, rising wages should lead to higher prices for  products and services in an economy, ultimately pushing the overall inflation rate higher.  As a result, Phillips graphed the relationship between general price inflation and  unemployment, rather than wage inflation. Data on unemployment (independent) and  inflation (dependent) from the Federal Reserve is on the Excel workbook.  a) Find the equation for the regression line for this data. b) Find the correlation coefficient and R2 . c) Using the data, is the correlation statistically significant at the 1% level?   please do it in excel

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter7: Exponents And Exponential Functions
Section: Chapter Questions
Problem 68SGR
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Economist A.W. Phillips was one of the first economists to present compelling evidence 
of the correlation between unemployment and wage inflation. Since wages and salaries 
are a major input cost for companies, rising wages should lead to higher prices for 
products and services in an economy, ultimately pushing the overall inflation rate higher. 
As a result, Phillips graphed the relationship between general price inflation and 
unemployment, rather than wage inflation. Data on unemployment (independent) and 
inflation (dependent) from the Federal Reserve is on the Excel workbook. 
a) Find the equation for the regression line for this data.
b) Find the correlation coefficient and R2
.
c) Using the data, is the correlation statistically significant at the 1% level?

 

please do it in excel

Observation Unemploymen Inflation date t Rate Rate 6 1 1960-01-01 5.2 1.2 7 2 1961-01-01 6.6 1.6 8 3 1962-01-01 5.8 0.7 9 4 1963-01-01 5.7 1.3 10 5 1964-01-01 6 1965-01-01 5.6 1.6 11 4.9 1.1 12 7 1966-01-01 4.0 1.9 13 8 1967-01-01 3.9 3.2 14 9 1968-01-01 3.7 3.6 15 # 1969-01-01 3.4 4.7 16 # 1970-01-01 3.9 6.2 5.3 17 # 18 # 1971-01-01 5.9 1972-01-01 5.8 3.3 19 # 1973-01-01 4.9 3.6 20 # 1974-01-01 5.1 9.6 21 # 1975-01-01 8.1 11.8 22 # 1976-01-01 7.9 6.7 23 # 1977-01-01 7.5 5.2 24 # 1978-01-01 6.4 6.8 25 # 1979-01-01 5.9 9.3 26 # 1980-01-01 6.3 13.9 27 # 1981-01-01 7.5 11.8 28 # 1982-01-01 8.6 8.3 29 # 1983-01-01 10.4 3.7 30 # 31 # 1984-01-01 8.0 4.3 1985-01-01 7.3 3.5 32 # 1986-01-01 6.7 4.0 33 # 1987-01-01 6.6 1.4 34 # 1988-01-01 5.7 4.1 35 # 1989-01-01 5.4 4.5 36 # 1990-01-01 5.4 5.2 37 # 1991-01-01 6.4 5.6 38 # 1992-01-01 7.3 2.7 39 # 1993-01-01 7.3 3.3
Transcribed Image Text:Observation Unemploymen Inflation date t Rate Rate 6 1 1960-01-01 5.2 1.2 7 2 1961-01-01 6.6 1.6 8 3 1962-01-01 5.8 0.7 9 4 1963-01-01 5.7 1.3 10 5 1964-01-01 6 1965-01-01 5.6 1.6 11 4.9 1.1 12 7 1966-01-01 4.0 1.9 13 8 1967-01-01 3.9 3.2 14 9 1968-01-01 3.7 3.6 15 # 1969-01-01 3.4 4.7 16 # 1970-01-01 3.9 6.2 5.3 17 # 18 # 1971-01-01 5.9 1972-01-01 5.8 3.3 19 # 1973-01-01 4.9 3.6 20 # 1974-01-01 5.1 9.6 21 # 1975-01-01 8.1 11.8 22 # 1976-01-01 7.9 6.7 23 # 1977-01-01 7.5 5.2 24 # 1978-01-01 6.4 6.8 25 # 1979-01-01 5.9 9.3 26 # 1980-01-01 6.3 13.9 27 # 1981-01-01 7.5 11.8 28 # 1982-01-01 8.6 8.3 29 # 1983-01-01 10.4 3.7 30 # 31 # 1984-01-01 8.0 4.3 1985-01-01 7.3 3.5 32 # 1986-01-01 6.7 4.0 33 # 1987-01-01 6.6 1.4 34 # 1988-01-01 5.7 4.1 35 # 1989-01-01 5.4 4.5 36 # 1990-01-01 5.4 5.2 37 # 1991-01-01 6.4 5.6 38 # 1992-01-01 7.3 2.7 39 # 1993-01-01 7.3 3.3
36 # 1990-01-01 5.4 5.2 37 # 1991-01-01 6.4 5.6 38 # 1992-01-01 7.3 2.7 39 # 1993-01-01 7.3 3.3 40 # 1994-01-01 6.6 2.5 41 # 1995-01-01 5.6 2.9 42 # 1996-01-01 5.6 2.8 43 # 1997-01-01 5.3 3.0 44 # 1998-01-01 4.6 1.6 45 # 1999-01-01 4.3 1.7 46 # 2000-01-01 4.0 2.8 47 # 2001-01-01 4.2 3.7 48 # 2002-01-01 5.7 1.2 49 # 2003-01-01 5.8 2.8 50 # 2004-01-01 5.7 2.0 51 # 2005-01-01 5.3 2.8 52 # 2006-01-01 4.7 4.0 53 # 2007-01-01 4.6 2.1 54 # 2008-01-01 5.0 4.3 55 # 2009-01-01 7.8 -0.1 56 # 2010-01-01 9.8 2.6 57 # 2011-01-01 9.1 1.7 58 # 2012-01-01 8.3 3.0 59 # 2013-01-01 8.0 1.7 60 # 2014-01-01 6.6 1.6 61 # 2015-01-01 5.7 -0.2 62 # 2016-01-01 4.8 1.2 2.5 63 # 64 # 2017-01-01 4.7 2018-01-01 4.0 2.1 65 # 2019-01-01 4.0 1.5 66 # 2020-01-01 3.5 2.5 67 # 2021-01-01 6.3 1.4
Transcribed Image Text:36 # 1990-01-01 5.4 5.2 37 # 1991-01-01 6.4 5.6 38 # 1992-01-01 7.3 2.7 39 # 1993-01-01 7.3 3.3 40 # 1994-01-01 6.6 2.5 41 # 1995-01-01 5.6 2.9 42 # 1996-01-01 5.6 2.8 43 # 1997-01-01 5.3 3.0 44 # 1998-01-01 4.6 1.6 45 # 1999-01-01 4.3 1.7 46 # 2000-01-01 4.0 2.8 47 # 2001-01-01 4.2 3.7 48 # 2002-01-01 5.7 1.2 49 # 2003-01-01 5.8 2.8 50 # 2004-01-01 5.7 2.0 51 # 2005-01-01 5.3 2.8 52 # 2006-01-01 4.7 4.0 53 # 2007-01-01 4.6 2.1 54 # 2008-01-01 5.0 4.3 55 # 2009-01-01 7.8 -0.1 56 # 2010-01-01 9.8 2.6 57 # 2011-01-01 9.1 1.7 58 # 2012-01-01 8.3 3.0 59 # 2013-01-01 8.0 1.7 60 # 2014-01-01 6.6 1.6 61 # 2015-01-01 5.7 -0.2 62 # 2016-01-01 4.8 1.2 2.5 63 # 64 # 2017-01-01 4.7 2018-01-01 4.0 2.1 65 # 2019-01-01 4.0 1.5 66 # 2020-01-01 3.5 2.5 67 # 2021-01-01 6.3 1.4
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