The document discusses estimating a multivariable regression model using data on the civilian labor force participation rate, civilian unemployment rate, and average hourly earnings to analyze the relationship between the variables and test economic hypotheses. The model would test whether the coefficients have the expected sign and are significant, how well the model fits the data, and whether the results support the discouraged worker or added worker hypothesis.

1. U.S Civilian Labor Force Participation Rate, Cillian Unemployment Rate and RealUse the data in
Table 1.1 entitled Civilian Labor Force Participation Rate (CLFPR), Civilian Unemployment Rate
(CUNR), and Average Hourly Earnings (AHE) to estimate the following multivariable regression
model using EVIEWS: CVLFPRt=b1+b2 CUNR t+b3AHEt+et A. Do the partial regression
coefficients have the expected sign? Are they significant? B. Does the model fit the data well? C.
Does the model support the discouraged worker or added worker hypothesis?