Sales of new houses and three-month lagged unemployment are shown in the following table. Determine if unemployment levels can be used to predict demand for new houses and, if so, derive a predictive equation.
Period ……………………….. | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
Units sold ………………….. | 20 | 41 | 17 | 35 | 25 | 31 | 38 | 50 | 15 | 19 | 14 |
Unemployment % | |||||||||||
(three-month lag) … | 7.2 | 4·0 | 7.3 | 5.5 | 6.8 | 6·0 | 5.4 | 3.6 | 8.4 | 7·0 | 9·0 |