1 40 points the file corruptionxls contains country

This preview shows page 1 - 3 out of 5 pages.

organize these in a way that will be clear to the reader.1)(40 points) The file Corruption.xls contains country-level data on two variables. One of these is a measure of perceptions of political corruption. (This data is assembled by the organization Transparency.org.) [NOTE: I have modified the original corruption measure so
that higher values mean higher corruption. The least corruption possible has a measure of 0, the highest a measure of 10.] The second variable is a measure of GDP per capita.a)(10) Before looking at any data, propose a simple economic story (model) for how these two variables might be related. Write a paragraph of no less than 50 words in which you explain your argument. Which is the independent, and which is the dependent variable inyour model? (Plausible stories could be told in which either variable could be the
b)(10) Whichever way you’ve chosen to model this problem, execute a linear regression. For one time in your life, you are going to be calculating the slope and intercept estimators in EXCEL (or Google Spreadsheet) using the “by hand” method that was demonstrated in the lectures. DO NOT USE THE BUILT IN EXCEL REGRESSION/VARIANCE/COVARIANCE FEATURES (except to check your work, if you desire). Report your Betahats. Y = β0+ β1X1 + c)(10) What percentage of the variation of your dependent variable is explained by the independent?e

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture