Econ Assignment #6

Econ Assignment #6 - Shivali Gupta Econ-10 Assignment#6...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Shivali Gupta Econ-10 Assignment #6 Professor Hansford Amy Leung Section 4 Part I: A. To perform the regression model I chose the election dataset. A research question that I might be able to answer with OLS regression analysis is the following: Is the adjusted median household income of a county correlated to the number the percent of high school graduates, the unemployment rate, and the percentage of the population living in an urban area. This is an interesting question, because it is very interesting to analyze what affects a household income. I think that many households are curious to know what affects the income of their household, therefore I think it’s important to analyze if any of these variables might correlate with the adjusted median household income. B. The following are the three research hypotheses that tentatively answer my research question: H 1 : Beta > 0. An increase in the percentage of the population living in an urban area correlates to an increase in the adjusted median household income of a county. The more people living in urban areas, cities, will lead to an increase of a household income, because I think that there are more job opportunities available to individuals, compared to rural areas. Therefore, the employment rate in an urban area will be much lower than in a rural area; leading to a higher household income. H 1 : Beta < 0. An increase in the unemployment rate correlates to a decrease in the adjusted median household income of a county. If members of a household are unemployed then the household income will be much lower, thus if employment rates are high then the adjusted median household income is likely to decrease. H 1 : Beta > 0. An increase in the percentage of high school graduates correlates to an increase in the adjusted median household income of a county. If more individuals are high school graduates then they will acquire more education which can be used for a higher paying job. Therefore, high school graduates will earn more money which can contribute to the household income in a positive manner. C. regress AdjIncome Unemploy ZPcntHS PcntUrban Source | SS df MS Number of obs = 900-------------+------------------------------ F( 3, 896) = 288.25 Model | 1.0729e+10 3 3.5764e+09 Prob > F = 0.0000 Residual | 1.1117e+10 896 12407095.2 R-squared = 0.4911-------------+------------------------------ Adj R-squared = 0.4894 Total | 2.1846e+10 899 24300290.2 Root MSE = 3522.4------------------------------------------------------------------------------ AdjIncome | Coef. Std. Err. t P>|t| [95% Conf. Interval]-------------+---------------------------------------------------------------- Unemploy | -266.8108 51.88026 -5.14 0.000 -368.6318 -164.989 ZPcntHSGrad| 2465.338 138.5185 17.80 0.000 2193.479 2737.196 PcntUrban | 41.14432 4.016302 10.24 0.000 33.26186 49.02677 _cons | 20428.71 314.8572 64.88 0.000 19810.77 21046.66------------------------------------------------------------------------------ Yes there is an independent variable that needs to be controlled for, farms per capita. Farms per capita Yes there is an independent variable that needs to be controlled for, farms per capita....
View Full Document

{[ snackBarMessage ]}

Page1 / 10

Econ Assignment #6 - Shivali Gupta Econ-10 Assignment#6...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online