sas stat procedure

[mauri0623]

1. Using the Federal Reserve data that was provided, please analyze and critique William Phillips’s theory to determine if the relationship holds in the United States.
2. Explore the relationship between inflation and the unemployment rate from a unique perspective not previously explored by William Phillips. 

[PaigeMiller]

What is your question?

[mauri0623]

What statistical procedure do I need to use to answer the question?

[PaigeMiller]

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@mauri0623 wrote:

What statistical procedure do I need to use to answer the question?

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But we don't know what the theory is ... "critique William Phillips’s theory to determine if the relationship holds in the United States". Nor do we understand this part: "Explore the relationship between inflation and the unemployment rate from a unique perspective not previously explored by William Phillips"

Anyway, you have to decide what statistical methods to use, and then perhaps we can recommend a procedure.

[ballardw]

Obviously homework.

So what techniques did your teacher suggest?

What have you attempted to apply those techniques?

And since I, an likely many readers, do not know what William Phillip's theory is/was there really isn't any way I am even going to attempt to test it.

[mauri0623]

The Phillips curve is an economic concept developed by A. W. Phillips stating that inflation and unemployment have a stable and inverse relationship. The theory claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.

[Reeza]

What statistical methods have you learned in class so far? It's likely to be one of those options. There's always more than one way to solve a problem. So is your instructor expecting a basic linear regression model, an ARIMA model, or something more complicated. 

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@mauri0623 wrote:

The Phillips curve is an economic concept developed by A. W. Phillips stating that inflation and unemployment have a stable and inverse relationship. The theory claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.

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[SteveDenham]

Here's an idea.  Obviously Phillips published this somewhere.  Find the original paper and see what methods were used.  
Then come back and ask us how to implement those methods in SAS.  You will probably get an answer pretty quickly.  It will also help you address the second question. Once you know the methods already used, you can explore alternatives.  Until you have that knowledge to share with us, the questions are just a black bag wrapped around stat methods, and you are asking us to draw something out of the bag that fits.  When we have that, then it is no longer a black bag, but a transparent one and we can eliminate the procedures in SAS that definitely do not apply.

SteveDenham

[mauri0623]

Yeah, I wish I know what Phillip used back in 1958. How about some inverse relationship between inflation and unemployment rate based on the data that is attached. That is a clear question. Is it?

[mauri0623]

Actually both a positive or a negative correlation between inflation and unemployment rate.

[djmangen]

Well the theory is suggesting a negative relationship.

The question of stability is one that probably looks at the same magnitude over different time periods, and/or the same magnitude across different countries.

As for what was done in 1958, it probably would be quite similar to what would be done today and/or expected by your instructor -- except that it would be solved by hand or with the help of a manual calculator -- or perhaps a slide rule.

[Reeza]

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@mauri0623 wrote:

Yeah, I wish I know what Phillip used back in 1958. How about some inverse relationship between inflation and unemployment rate based on the data that is attached. That is a clear question. Is it?

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https://onlinelibrary.wiley.com/doi/full/10.1111/j.1468-0335.1958.tb00003.x