Is/OneDrive/Pa604whi%20cron/5%20semester/5%20MTH/MTH521%20-%20A2%20updated.pdf + Q [pocMOTP CTpaHubl A poyecTb BCnyx I V HapucoBarb BbleneHue The relationship between inflation and unemployment is not very strong. However, if we are interested in predicting unemployment, we would probably want to predict next year's unemployment from this year's inflation. We can construct an equation to do this by matching each year's inflation with the next year's unemployment, as shown in the following table. This Year's Next Year's This Year's Next Year's Year Inflation Unemployment Year Inflation Unemployment 1991 3.1 7.5 2005 3.4 4.6 1992 2.9 6.9 2006 2.5 4.6 1993 2.7 6.1 2007 4.1 5.8 1994 2.7 5.6 2008 0.1 9.3 1995 2.5 5.4 2009 2.7 9.6 1996 3.3 4.9 20 10 1.5 8.9 1997 1.7 4.5 2011 3.0 8.1 1998 1.6 4.2 20 12 1.7 7.4 1999 2.7 4.0 20 13 1.5 6.2 2000 3.4 4.7 20 14 0.8 5.3 2001 1.6 5.8 20 15 0.7 4.9 2002 2.4 6.0 20 16 2.1 4.4 2003 1.9 5.5 20 17 2.1 3.9 2004 3.3 5.1 Source: Bureau of Labor Statistics 6. Compute the least-squares line for predicting next year's unemployment from this year's inflation. 7. Predict next year's unemployment if this year's inflation is 3.0%. 8. Compute the correlation coefficient between this year's inflation and next year's unemployment