Determine the strength of the correlation |Science
How strong is the correlation between the inflation rate and 30-year treasury yields? The following data published by Fuji Securities are given as pairs of inflation rates and treasury yields for selected years over a 35-year period.
Inflation rate (%) 30-year treasury yield (%)
1.57 3.05
2.23 3.93
2.17 4.68
4.53 6.57
7.25 8.27
9.25 12.01
5.00 10.27
4.62 8.45
Compute the Pearson product-moment correlation coefficient to determine the strength of the correlation between these two variables. Comment on the strength and direction of the correlation.
