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AMS2320 Business Regression Analysis Semester 2, 2024-2025 ASSIGNMENT 2 There are two questions. Please answer all questions and show your steps clearly. Correct your numerical answers to 4 decimal places. You may use SAS and/or R to do the calculations. Please include the program codes in your answer script. Combine all materials in a single pdf file with file name: AMS2320 Assignment 2 – [Student ID].pdf (e.g. AMS2320 Assignment 2 – s123456.pdf) and submit it via Moodle. Question 1. Is there structural break in the price level data? It is suggested that there is a structural break in the price level. The period before 2007 is one regime. The period 2007 and after is another. Consider the model CPI = β0+ β1(Year) + β2D + β3(D)(Year) . where D is a dummy variable: 0 for before the break and 1 for after. We want to test if the so-called
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