Econometrics/ Multiple Regression: Specification Issues / Use of Stata use "storks.dta" The data in storks.dta provides
Posted: Mon Apr 11, 2022 6:23 am
Econometrics/ Multiple Regression: Specification Issues
/ Use of Stata
use "storks.dta"
The data in storks.dta provides information on the stork
population in pairs (storks), the population of humans in millions
(humans), the size of the country in km2 (area) as well as the
birth rate in thousands (birth rate) for 17 countries. Kindly
answer the following 3 questions
1. Compute the correlation between storks and birth rate and
provide a scatter plot. How do you interpret the relationship?
2. Estimate the SLR model: birth ratei = β0 + β1storksi + ui and
write down the corresponding regression line and add it to the
scatter.
2.1 Is the estimated slope coefficient statistically
significant at the 1% level? By how much will the birthrate
increase if the stork population is increased by three pairs of
birds?
3. What are potential factors that are included in the error
term ui in equation (2) ? Are these likely to be correlated with
storks? Argue.
/ Use of Stata
use "storks.dta"
The data in storks.dta provides information on the stork
population in pairs (storks), the population of humans in millions
(humans), the size of the country in km2 (area) as well as the
birth rate in thousands (birth rate) for 17 countries. Kindly
answer the following 3 questions
1. Compute the correlation between storks and birth rate and
provide a scatter plot. How do you interpret the relationship?
2. Estimate the SLR model: birth ratei = β0 + β1storksi + ui and
write down the corresponding regression line and add it to the
scatter.
2.1 Is the estimated slope coefficient statistically
significant at the 1% level? By how much will the birthrate
increase if the stork population is increased by three pairs of
birds?
3. What are potential factors that are included in the error
term ui in equation (2) ? Are these likely to be correlated with
storks? Argue.