Question

In: Statistics and Probability

The following? time-series plot shows the annual unemployment rate in blue and the annual inflation rate...

The following? time-series plot shows the annual unemployment rate in blue and the annual inflation rate in red over a period of 19 years. Complete parts? (a) through? (d) below.

(b) Estimate the unemployment and inflation rates for year 19

The unemployment rate in year 19 was approximately ___%

The inflation rate in year 19 was approximately ___%

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Expert Solution

The Time Series plot is:

a) Year 5:

Unemployment rate: 7.5%

Inflation rate: 3%

b) Year 19:

Unemployment rate: 5.2%

Inflation rate: 3.6%

c) Misery Index:

Year 5: 10.5%

Year 19: 8.8%

d) We could say the following from the time-series plot:

An increase in the inflation rate seems often to be followed by a decrease in the unemployment rate. Likewise, a decrease in the inflation rate seems often to be followed by an increase in the unemployment rate.An increase in the inflation rate seems often to be followed by a decrease in the unemployment rate. Likewise, a decrease in the inflation rate seems often to be followed by an increase in the unemployment rate.

Answer: A)

orchestra answered 2 years ago

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