Obtain monthly unemployment data from 1/1/2010 to 12/31/2014 for the following areas; Minnesota, FRB-Minneapolis Area, Sterns county in MN.
Answer the following questions for each data series separately.
A: Provide the time series plot.
B: Identify the time series characteristics. Explain.
C: Assuming no cyclical pattern, provide the best regression model for each data series.
D: Run the regression model using E-views.
E: Explain the validity of the model.
F: Do we find autocorrelation issue in the model? Explain your answer.
G: Provide the Residual plot. Describe the distribution of residuals.
H: Provide the monthly forecasted unemployment rates for 2015.
For State Data: Home > FRED® Economic Data > Categories > U.S. Regional Data
For Federal Reserve District Data: Home > FRED® Economic Data > Categories > U.S. Regional Data > Federal Reserve Districts > Minneapolis
For County Data: Home > FRED® Economic Data > Categories > U.S. Regional Data > States > Minnesota > Sterns
I: Based on the forecasted values, provide a comparative labor market analysis on unemployment rates across the three regions for year 2015.