# 2f what is the correlation coefficient between log

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2f)What is the correlation coefficient between log(income) andprppov? Is it roughlywhat you expected? (Statacommand is “corr x y”).
is not even closer to 100% indicates that there is some extra information in percent inpoverty beyond income. In other words, take two neighbourhoods with the same income.The neighbourhood with a higher proportion in poverty is a more unequalneighbourhood, with lots of very poor households and lots of very rich households.2g)Compute the variance inflation factor forprppovin 2e.=4090.00000.7955.03058
11Each answer in problem 2 is worth one point. Two extra points are given for properformatting.Please include all relevant Stata OR R output with your homework.There is a small bonus(extra 3 points)from including both Stata and Routput(including code) for Problem 2.
12Appendix 1. Stata code.* PROBLEM 1. use "C:\Users\Miana\Dropbox\Teaching\ECON 3740\gpa2.dta", clear. sum colgpa hsper satVariable |ObsMeanStd. Dev.MinMax-------------+---------------------------------------------------------colgpa |4,1372.652686.658634704hsperc |4,13719.2370716.56873.166666792sat |4,1371030.331139.40144701540. reg colgpa hsper satSource |SSdfMSNumber of obs=4,137-------------+----------------------------------F(2, 4134)=777.92Model |490.6067062245.303353Prob > F=0.0000Residual |1303.588974,134.315333567R-squared=0.2734-------------+----------------------------------Adj R-squared=0.2731Total |1794.195674,136.433799728Root MSE=.56155------------------------------------------------------------------------------colgpa |Coef.Std. Err.tP>|t|[95% Conf. Interval]-------------+----------------------------------------------------------------hsperc |-.0135192.0005495-24.600.000-.0145965-.012442sat |.0014762.000065322.600.000.0013482.0016043_cons |1.391757.071542419.450.0001.2514951.532018------------------------------------------------------------------------------. gen newsat=sat/100. sum newsatVariable |ObsMeanStd. Dev.MinMax-------------+---------------------------------------------------------newsat |4,13710.303311.3940144.715.4. reg colgpa hsper newsatSource |SSdfMSNumber of obs=4,137-------------+----------------------------------F(2, 4134)=777.92Model |490.6067062245.303353Prob > F=0.0000Residual |1303.588974,134.315333568

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