Business, 20.12.2019 20:31 pepethefrog3
The index of industrial production (ipt) is a monthly time series that measures the quantity of industrial commodities produced in a given month. this problem uses data on this index for the united states. all regressions are estimated over the sample period 1986: m1 to 2017: m12 (that is, january 1986 through december 2017). let:
yt = 1200 x ln(ipt / ipt - 1)
a. the forecaster states that yt shows the monthly percentage change in ip, measured in percentage points per annum. is this correct? why?
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