The following conditions must be met:
1. Pick any topic/question of finance/economics.
2. Use at least 4 related variables, with at least 200 observations (per variable).
3. Carefully document the source of your data, the variable definitions. What’s your
dependent variable?
4. Summarize your data, plot some graphs. Need any data cleaning?
5. Address some important issues, such as stationarity, seasonality, etc. Need any dum-
mies?
6. Build several models (such as different independent variables, different types of models,
etc.).
7. Use 80% data as training and the rest 20% as testing.
8. Compare and contrast different relevant models and specifications to evaluate which is
best.
9. State at least one hypothesis. Test your hypotheses.
10. What’s your conclusions?
11. Your report should be clear, concise, and communicate effectively. It should not require
any detective work on the part of the reader to figure out what you have done. Ev-
erything must be explained, at least briefly. Be sure to analyze your results in writing
and draw conclusions.
12. Treat it as a formal business report, not just an assignment. Carefully format your
figures, fonts and page layout