Question: Use a multiple regression model with the housing starts as the dependent variable and Real GSP, Growth in GSP, Unemployment rate, sales of lumber, sales

  1. Use a multiple regression model with the housing starts as the dependent variable and Real GSP, Growth in GSP, Unemployment rate, sales of lumber, sales of sheet goods, and sales of miscellaneous hardware as the independent variables. (10 points) What variables are statistically significant predictors of the Housing starts? (5 points) What is their interpretation? (10 points)

  1. Create a dummy variable (shock) that is equal to one, if the year is 2006 and forward and 0 otherwise. (5 points)

  1. Now add shock to your model in part B. (5 points) Interpret the coefficient of shock. (5 points

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