FRED Graph Observations Federal Reserve Economic Data https://fred.stlouisfed.org/graph/?g=3obN Observation dateUnemployment RateInflation Rate11960-01-015.21.221961-01-016.61.631962-01-015.80.741963-01-015.71.351964-01-015.61.661965-01-014.91.171966-01-014.01.981967-01-013.93.291968-01-013.73.6101969-01-013.44.7111970-01-013.96.2121971-01-015.95.3131972-01-015.83.3141973-01-014.93.6151974-01-015.19.6161975-01-018.111.8171976-01-017.96.7181977-01-017.55.2191978-01-016.46.8201979-01-015.99.3211980-01-016.313.9221981-01-017.511.8231982-01-018.68.3241983-01-0110.43.7251984-01-018.04.3261985-01-017.33.5271986-01-016.74.0281987-01-016.61.4291988-01-015.74.1301989-01-015.44.5311990-01-015.45.2321991-01-016.45.6331992-01-017.32.7341993-01-017.33.3351994-01-016.62.5361995-01-015.62.9371996-01-015.62.8381997-01-015.33.0391998-01-014.61.6401999-01-014.31.7412000-01-014.02.8422001-01-014.23.7432002-01-015.71.2442003-01-015.82.8452004-01-015.72.0462005-01-015.32.8472006-01-014.74.0482007-01-014.62.1492008-01-015.04.3502009-01-017.8-0.1512010-01-019.82.6522011-01-019.11.7532012-01-018.33.0542013-01-018.01.7552014-01-016.61.6562015-01-015.7-0.2572016-01-014.81.2582017-01-014.72.5592018-01-014.02.1602019-01-014.01.5612020-01-013.52.5622021-01-016.31.4Please show the excel formulas. 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?

a) Given that x (independent variable) denotes unemployment rate and y (dependent variable) denotes…

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

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

Related questions

Question

	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