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are106-homework-5

# are106-homework-5 - E conometrics Homework 5 A RE 106 N ine...

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ARE 106 Nine questions on one page. Econometrics Homework 5 Winter 2010 A. Havenner Data4-17 contains county-level data for California in 1999 on aid to families with dependent children (afdc) and its determinants; see Gretl's Data info for variable definitions. Notice that except for income, all the variables are percentages of the given county's population. Income is measured in dollars -- not stated but apparent form the data values. Use this dataset to answer the following questions. For grading sanity. please run and report your regressions with the variables in the order they are listed in the dataset. When testing hypotheses always explicitly state the null and alternate hypotheses, the algebraic test statistic, its distribution, and its sample value, and draw a plain language but precise conclusion. See the handout Reporting Hypothesis Tests for examples. [5] 1. Is this a time series or cross section dataset? [10] 2. Run a regression relating afdc to the the following 7 variables: the intercept "const," the
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