Using our US Macro data, do the following (make sure your year and quarter variables are destringed like we did last week)
a. First, run a hypothesis test looking at if the average unemployment rate (over all years) is different than 6. Write your null and alternative hypotheses. Interpret your results. Do they make sense to you?
b. Now run a hypothesis test the average unemployment rate from 2008 – 2010 is different than 6. Write your null and alternative hypotheses. Interpret your results. Do they make sense to you?
c. What is the 95% confidence interval for the unemployment rate between 2008 & 2010 (hint, you should not need to write a new line of code). Interpret this. Does it align with what you found in part (b)?
d. BONUS: run a hypothesis test that looks at the difference between the average unemployment rate across 2008-2010 and all other years. (hint: use the “by” function). Interpret your results. Does this surprise you given what you found in parts a & b?
Read Chapter 4 in Naked Statistics. Write a 3 paragraph max reading response. Some potential questions to get you going: What stood out to you when you were reading? What was surprising? What felt obvious to you? What questions do you still have and what remains unclear to you? How can you apply this to your future work? Does anything you read make you want to do something differently in the future? How can you apply this to your journalistic/comms work?
