Question: Figure 3 shows a plot of the first differences in the civilian unemployment rate (UER) between January 1996 and December 2000, AUER,= UER, - UER---

Figure 3 shows a plot of the first differences in the

Figure 3 shows a plot of the first differences in the civilian unemployment rate (UER) between January 1996 and December 2000, AUER,= UER, - UER--- 8 Quantitative Investment Analysis FIGURE 3 Change in Civilian Unemployment Rate Percent 0.4 0.3 0.2 0.1 0.0 -0.1 -0.2 -0.3 -0.4 -0.5 1996 f AMMA MAMA 1997 1998 1999 2000 Year based on the data presented in Figure 3, should you include a trend term in a model of the changes in the civilian unemployment rate? Please explain your response

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