Forecasting GDP based on Education, Unemployment, and Compensation Period Gross Domestic Product Education Spend ($ million) Unemployment
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Question:
Forecasting GDP based on Education, Unemployment, and Compensation | |||||
Period | Gross Domestic Product | Education Spend ($ million) | Unemployment Rate (% of Labor Force) | Employee Compensation ($ million) | |
GDP | ED | UE | EC | ||
2000 | 256,376 | 14,185 | 7.00 | 128,564 | |
2001 | 264,335 | 15,004 | 6.60 | 135,710 | |
2002 | 273,256 | 15,821 | 7.50 | 141,985 | |
2003 | 281,200 | 16,566 | 8.20 | 144,669 | |
2004 | 296,820 | 16,709 | 8.40 | 148,851 | |
2005 | 310,038 | 17,646 | 8.50 | 153,985 | |
2006 | 325,152 | 18,295 | 8.30 | 161,393 | |
2007 | 343,619 | 18,962 | 7.50 | 170,106 | |
2008 | 351,743 | 20,133 | 7.00 | 179,628 | |
2009 | 346,473 | 21,071 | 7.90 | 180,906 | |
2010 | 363,140 | 21,936 | 8.30 | 184,711 | |
2011 | 375,968 | 23,356 | 7.20 | 193,171 | |
2012 | 386,175 | 24,158 | 7.60 | 199,806 | |
2013 | 392,880 | 25,045 | 8.40 | 203,606 | |
2014 | 403,003 | 25,436 | 8.50 | 206,201 | |
2015 | 416,701 | 26,282 | 8.50 | 208,128 | |
2016 | 430,085 | 26,675 | 7.80 | 211,813 | |
2017 | 444,991 | 27,853 | 7.10 | 219,187 | |
2018 | 460,419 | 28,618 | 6.00 | 226,300 | |
Questions | |||||
1. Run correlation on the independent variables (ED, UE, EC). Show output. | |||||
2. Which two independent variables are highly correlated? | |||||
3. Run regression on GDP against ED, UE, and EC. Show output. | |||||
4. Interpret the R Square value with emphasis on the role of the independent variables. | |||||
5. Build the regression model for GDP forecasting. | |||||
6. Which independent variables may not belong in the model? Why? | |||||
7. Re-run regression, this time excluding the suspect independent variables. | |||||
8. Is the P-value significant (5%)? What's the interpretation regarding the independent variable(s) in the model? |
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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