We have run seasonal arma model on the unemployment rate data. Now con-

sider adding the weekly initial jobless claim to predict the monthly unem-

ployment rates.

The data is from 1967 to 2010.

The data is given in "m-

unrateic.txt". As shown below, the column "rate" denotes the unemployment

rate, and the 5th to 8th column denotes the weekly jobless claims from week

1 to week 4 of the month and the last column-"icm1" is the total number of

initial jobless claim of the month.

> da=read.table("m-unrateic.txt", header=T)

>

> head(da)

Perform a simple regression of unrate with the monthly claim numbers

using the following commands. Comment on the results of the regression

and the acf/pacf plots.