The Bureau of Labor Statistics (BLS) publishes data on many characteristics of the U.S. economy. The file called BLS County Data contains information on every county in the United States for which data are available (source: www.bls.gov/data/). Two of the variables are the 2014 county unemployment rate and the 2014 median household income.
a. Construct a regression equation with median income as the dependent variable and unemployment rate as the independent variable. Indicate what percentage of the variation in median income is explained by knowing the county’s unemployment rate in 2014.
b. Write a short description of the relationship between these two variables. Use the regression model output to assist you with the discussion.