FRED Graph Observations Federal Reserve Economic Data https://fred.stlouisfed.org/graph/?g=3obN Observation dateUnemployment RateInflation Rate11960-01-015.21.221961-01-016.61.631962-01-015.80.741963-01-015.71.351964-01-015.61.661965-01-014.91.171966-01-014.01.981967-01-013.93.291968-01-013.73.6101969-01-013.44.7111970-01-013.96.2121971-01-015.95.3131972-01-015.83.3141973-01-014.93.6151974-01-015.19.6161975-01-018.111.8171976-01-017.96.7181977-01-017.55.2191978-01-016.46.8201979-01-015.99.3211980-01-016.313.9221981-01-017.511.8231982-01-018.68.3241983-01-0110.43.7251984-01-018.04.3261985-01-017.33.5271986-01-016.74.0281987-01-016.61.4291988-01-015.74.1301989-01-015.44.5311990-01-015.45.2321991-01-016.45.6331992-01-017.32.7341993-01-017.33.3351994-01-016.62.5361995-01-015.62.9371996-01-015.62.8381997-01-015.33.0391998-01-014.61.6401999-01-014.31.7412000-01-014.02.8422001-01-014.23.7432002-01-015.71.2442003-01-015.82.8452004-01-015.72.0462005-01-015.32.8472006-01-014.74.0482007-01-014.62.1492008-01-015.04.3502009-01-017.8-0.1512010-01-019.82.6522011-01-019.11.7532012-01-018.33.0542013-01-018.01.7552014-01-016.61.6562015-01-015.7-0.2572016-01-014.81.2582017-01-014.72.5592018-01-014.02.1602019-01-014.01.5612020-01-013.52.5622021-01-016.31.4it needs to be with excel formulas.Thanks Economist A.W. Phillips was one of the first economists to present compelling evidenceof the correlation between unemployment and wage inflation. Since wages and salariesare a major input cost for companies, rising wages should lead to higher prices forproducts and services in an economy, ultimately pushing the overall inflation rate higher.As a result, Phillips graphed the relationship between general price inflation andunemployment, rather than wage inflation. Data on unemployment (independent) andinflation (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 R?.c) Using the data, is the correlation statistically significant at the 1% level?

The data shows the unemployment rate and inflation rate from the Federal Reserve.

Answered: Economist A.W. Phillips was one of the…

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Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

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	FRED Graph Observations
	Federal Reserve Economic Data
	https://fred.stlouisfed.org/graph/?g=3obN

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