Question: In Table 2-11 we have data on CPI and the S&P 500 index for the years 1990 to 2007. CONSUMER PRICE INDEX (CPI) AND S&P

In Table 2-11 we have data on CPI and the S&P 500 index for the years 1990 to 2007.
CONSUMER PRICE INDEX (CPI) AND S&P 500
INDEX (S&P), UNITED STATES, 1990-2007

a. Repeat questions (a) to (e) from problem 2.12.
b. Do you see any difference in the estimated regressions?
c. Now combine the two sets of data and estimate the regression of the S&P index on the CPI.
d. Are there noticeable differences in the three regressions?
For Information: problem 2.12.

Year CPI S&P 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 130.7 136.2 140.3 144.5 148.2 152.4 156.9 160.5 163.0 166.6 172.2 334.59 376.18 415.74 451.41 460.42 541.72 670.50 873.43 1085.50 1327.33 1427.22 1194.18 993.94 965.23 1130.65 1207.23 1310.46 1477.19 179.9 184.0 188.9 195.3 201.6 207.3

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