Table 173
the Table Below Gives the Number of Housing Starts

Essay

Table 17.3
The table below gives the number of housing starts and the unemployment rates for a sequence of quarters:

-Use Table 17.3 to solve the following:
a. Calculate the correlation coefficient.
b. What is the proportion of the total variation in unemployment rates that is explained by the number of housing starts?
c. Test the null hypothesis that $\mathrm{Q}=-0.1$ at $\alpha=0.05$ .