are106-homework-2-key

# are106-homework-2-key - PS2AK Problem 1(i DATA2-3 Annual...

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PS2AK Problem 1 (i) . DATA2-3: Annual data for the U.S. on unemployment and inflation rates and wage growth. Source: 1996 Economic Report of the President. year = 1959-95, 37 observations unemp = Civilian unemployment rate (%), Table B-38, Range 3.5 - 9.7. cpi = Consumer price index (1982-84 = 100), Table B-56, Range 29.1 - 152.4. infl = Percent change in CPI (inflation rate) calculated as 100*[CPI(t) - CPI(t-1)]/CPI(t-1), Range 0.69-13.5. wggr = Percent change in average weekly earnings, in current dollars, Table B-43, Range 1.9 - 8.5. (ii). This is a time series dataset. (iii). Summary statistics, using the observations 1959 - 1995 Mean Median Minimum Maximum year 1977.0 1977.0 1959.0 1995.0 unemp 6.0865 5.8000 3.5000 9.7000 cpi 74.914 60.600 29.100 152.40 infl 4.6405 4.1400 0.69000 13.500 wggr 4.6054 4.3000 1.9000 8.5000 Std. Dev. C.V. Skewness Ex. kurtosis year 10.824 0.0054751 0.0000 -1.2018 unemp 1.4790 0.24299 0.47506 0.17104 cpi 42.312 0.56481 0.44132 -1.3011 infl 3.1303 0.67455 1.1286 0.72847 wggr 1.9764 0.42914 0.43540 -1.1233 The variance of the inflation rate = σ 2 = 3.1303 2 = 9.79877809 The coefficient of variation = 0.67455 The coefficient of variation uses the standard deviation rather than the variance because the units on the standard deviation are the same as the units of the mean. When taking the ratio of the two, the units cancel yielding a unitless measure. As a unitless measurement of data spread, the Coefficient of Variation is easily used for comparison across data measured in different units. Definition of the coefficient of variation: the ratio

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are106-homework-2-key - PS2AK Problem 1(i DATA2-3 Annual...

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