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    Testing w/ regression: Average Duration of Unemployment

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    Hypothesis one: The average duration of unemployment is a leading indicator of economic recession.

    Analyse (graph) the unemployment duration data versus GDP data to either support or contradict this hypothesis.

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    Solution Preview

    I would say that GDP and length of unemployment are "related" (as evidenced in the regression analysis on the Real GDP tab in Excel) but the full hypothesis is not just are they related, but does the change in unemployment duration occur FIRST andt then the GDP amounts ...

    Solution Summary

    Your discussion is 151 words and includes a regression analysis to show the relationship between the two variables. The hypothesis is supported prior to a certain date and not support after that date. The comments tell you why.