2. A research was carried out to study the relationship between inflation rate and unemployment rate. The data were summarized as in the table below. Inflation Rate Unemployment Rate 0.7 4.5 1.5 9.0 2.4 9.5 2.8 10.5 3.5 6.5 3.5 6.8 4.5 4.0 6.5 5.5 (a) State the independent variable. (b) Compute the product moment coefficient of correlation for the data and comment on its value. Use the formula r = n(?XY) - (?X)(?Y) / ?[n?X²-(?X)²][n?Y²- (?Y)²] (c) Construct a least-squares regression equation of the two variables. Regression equation: Y = a + bX (d) Compute the coefficient of determination and explain its meaning. (e) Estimate the inflation rate for an unemployment rate of 7.0.
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