Chapter 6.1, Problem 6.19E

To determine

To explain why higher unemployment does not necessarily mean that the training program failed and also identify some lurking variables whose effect on unemployment will be confounded and also construct a picture to illustrate.

Explanation of Solution

We are interested in the relationship between unemployment rate and job training program.

A possible variable is economic situation because if there is a recession then this employment rate will increase even if the job training program was effective.

Other possible lurking variables are then IQ, Age, gender, etc.

The picture to illustrate this is as;