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he following table shows the cluster analysis pf some macroeconomic variables. Briefly explain what each column means. Pick the best variable from each cluster. Explain
he following table shows the cluster analysis pf some macroeconomic variables. Briefly explain what each column means. Pick the best variable from each cluster. Explain your reason. 3 Clusters R-squared with 1-R**2 Ratio Variable Label Cluster Variable Own Cluster Next Closest Cluster 1 Disposable_Personal 0.9939 0.1303 0.0070 Disposable_Personal Disposable_Personal_Real 0.9975 0.0112 0.0025 Disposable_Personal_Real Case-ShillerHomePrice 0.8985 0.2354 0.1327 Case-ShillerHomePrice S&P500Price_Index 0.9577 0.2773 0.0585 S&P500Price_Index GDP 0.9956 0.1461 0.0051 GDP GDP_Real 0.9975 0.1662 0.0030 GDP_Real Industrial_Production 0.9417 0.2976 0.0830 Industrial_Production IncomePersonal-Total 0.9952 0.1433 0.0056 IncomePersonal-Total Cluster 2 Housing_Starts 0.7939 0.5005 0.4126 Housing_Starts NewHomeSales 0.7545 0.3030 0.3522 NewHomeSales Bank_PrimeRate 0.8161 0.5827 0.4173 Bank_PrimeRate Cluster 3 Unemployment_Rate 0.8829 0.5698 0.2723 Unemployment_Rate Unemployment-InitialClaims 0.8085 0.3183 0.2809 Unemployment-InitialClaims ConsumerConfidence_Index 0.8757 0.7344 0.4680 ConsumerConfidence_Index
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