How strong is the correlation between the inflation rate and 30-year treasury yields? The following data published by Fuji Securities are given as pairs of inflation rates and treasury yields for selected years over a 35-year period. Inflation Rate 30-Year Treasure Yield 1.57% 3.10% 2.23 3.93 2.19 4.68 4.53 6.57 7.25 8.27 9.25 11.93 5.02 10.27 4.62 8.45 Compute the Pearson product-moment correlation coefficient to determine the strength of the correlation between these two variables. Comment on the strength and direction of the correlation. (Round the intermediate values to 4 decimal places. Round your answer to 3 decimal places.) a r= ? b There is a strong negative relationship or strong positive relationship between the inflation rate and the thirty-year treasury yield. ?
How strong is the
|
Inflation Rate |
30-Year Treasure Yield |
|---|---|
|
1.57% |
3.10% |
|
2.23 |
3.93 |
|
2.19 |
4.68 |
|
4.53 |
6.57 |
|
7.25 |
8.27 |
|
9.25 |
11.93 |
|
5.02 |
10.27 |
|
4.62 |
8.45 |
Compute the Pearson product-moment
(Round the intermediate values to 4 decimal places. Round your answer to 3 decimal places.)
a r= ?
b There is a strong negative relationship or strong positive relationship between the inflation rate and the thirty-year treasury yield. ?
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