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Use the data in QLEISCOIN.XLS and statistical software to do Granger tests to determine if changes in

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Use the data in QLEISCOIN.XLS and statistical software to do Granger tests to determine if changes in the leading economic indicators (LEIS) precede changes in the coincident indicators (COIN).

(A) Using lag lengths of 6, show the five-step procedure for the Granger test that changes in LEIS do not precede changes in COIN.

(B) Using lag lengths of 6, show the five-step procedure for the Granger test that changes in COIN do not precede changes in LEIS.

(C) Given your results in (A) and (B), can you unequivocally conclude that changes in LEIS precede changes in COIN?

(D) Does your answer to (C) change when lag lengths of 10 are used?

(E) Does your answer to (C) change when lag lengths of 12 are used?

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