An economist for the state government of Mississippi recently collected the data contained in the file called Mississippi on the percentage of people unemployed in the state at randomly selected points in time over the past 25 years and the interest rate of Treasury bills offered by the federal government at that point in time.
a. (1) Develop a plot showing the relationship between the two variables. (2) Describe the relationship as being either linear or curvilinear.
b. (1) Develop a simple linear regression model with unemployment rate as the dependent variable. (2) Write a short report describing the model and indicating the important measures.