1. Why did Young choose to solve the autocorrelation problem first?
2. Would it have been better to eliminate multicollinearity first and then tackle autocorrelation?
3. How does the small sample size affect the analysis?
4. Should the regression done on the first differences have been through the origin?
5. Is there any potential for the use of lagged data?
6. What conclusions can be drawn from a comparison of the Spokane County business activity index and the GNP?
Prior to 1973, Spokane County, Washington, had no up-to-date measurement of general business activity. What happens in this area as a whole, however, affects every local business, government agency, and individual. Plans and policies made by an economic unit would be incomplete without some reliable knowledge about the recent performance of the economy of which the unit is a component part. A Spokane business activity index should serve as a vital input in the formulation of strategies and decisions in private as well as in public organizations.