RegressionofInflationrate(fromCPI)onYear.pdfVIP

ECON 497 Final Exam Page 1 of 1 ECON 497: Economic Research and Forecasting Name:________________ Spring 2007 Bellas Final Exam Return this exam to me by 4:00 on Wednesday, April 25. It may be e-mailed to me. It may be delivered to my office in Minneapolis or faxed to me before 4:00 on the 25th at 612-659-7268. You can also send it to my office through the regular post or to my home via regular post, but it should be post-marked by the 25th. You may consult any written source you like regarding the answers to these questions but you may not ask any person other than me any questions about this test. Questions to me must be sent via e-mail and responses will be sent to the entire class. Answer all questions, and explain your answers. Fifty points total, points per part indicated in parentheses. 1. There is a real dataset for this exam that includes, for the years 1965 through 2003 the inflation rates (annual percentage changes) associated with the consumer price index (CPI) and producer price index (PPI) taken from the 2004 Economic Report of the President.1 This question asks you to investigate the relationship between changes in the CPI and changes in the PPI. A. Regress CPI inflation on year and report your results. (2) Regression of Inflation rate (from CPI) on Year Model Summaryb Adjusted Std. Error of Durbin- Model R R Square R Square the Estimate Watson 1 .390a .152 .129 2.7131 .470 a. Predictors: (Constant), Year b. Dependent Variable: CPI Coefficientsa Unstandardized Standardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 201.908