# answers - Xiaoqiao Wang Problem set 1 AREC 345-M/W...

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Xiaoqiao Wang Problem set 1 AREC 345-M/W 11:00-11:50am 1. a Thus, the relationship between latitude and per capita income is positive. b. The average value of GDP per capital in tropical countries is 6.92, and the average income in non-tropical countries is 8.04 c. The average level of abs latitude observed in the data is 11.48085 The average level of countries which are closer than Africa per capita income is 6.960033 The average level of countries which are further than Africa per capita income is 7.127564 d. - 0.16753 7.12756 4 0.23847 8 0.17041 4 Y=7.127564-0.16753x+E So 7.1275 is higher than the countries that are closer to the equator and similar to the countries that are further from equator. t=abs(- 0.16753/0. 2385)=0.70 243 So, it fails to reject the hypothesis and the variable is insignificant; thus, do not reject hypothesis. It also means there is no relationship between variables. e. The evidence shows that there is association between the GDP per capita with latitude. Two reasons: a. Tropical Africa has high temperature and average of 12 hour sunlight. Since the temperature is so high in tropical area of Africa, the growth of plants are affected

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answers - Xiaoqiao Wang Problem set 1 AREC 345-M/W...

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