Table 1-2 on the website updates the data given in Table 1-1 for the years 20012016. For

Question:

Table 1-2 on the website updates the data given in Table 1-1 for the years 2001–2016. For the years 2001–2007, the CLFR and CUNR figures are the same as those shown in Table 1-1. However, the AHE82 figures differ in the two periods. As pointed out in the text, the differences are usually due to data revisions.

a. Plot CLFR and CUNR as in Figure 1-1. What difference due you see in the two scattergrams?

b. Is the relationship between the variables linear as in Figure 1-1? If so, visually sketch a regression line through the scatterplot.

c. Is there a “break” in the data in the sense that after a certain date, the relationship between the two variables has changed? Can you spot that break point?

d. Based on the data in Table 1-2, the regression results corresponding to Equation (1.3) are as follows:
CLFR CUNR = 66.5245 −0.2465
How does t his regression differ from the one shown in Equation (1.3)? What may be the reason for the difference?

e. The regression results corresponding to Equation (1.5) using the data in Table 1-2 are as follows: