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(b) In January 2021, many people across the world died from COVID-19. To examine the factors affecting the number of deaths, data were collected on
(b) In January 2021, many people across the world died from COVID-19. To examine the factors affecting the number of deaths, data were collected on the following variables for 100 countries. DEATH: Total number of deaths due to COVID-19 in each country in January 2021 TEMP: Average temperature (in Celsius) in January 2021 POPSC: The number of senior citizens, aged over 65 SH: A dummy variable that takes a value of 1 if a country is located in the southern hemisphere and 0 otherwise. The estimated model is given below. Standard errors are in parentheses. log(DEATH;) = 6.022 - 0.052 log(TEMP/) + 0.0000044POPSC; - 0.878SH; (2.62) (0.068) (0.000002) (0.242) n = 100 R2 = 0.746 (i) Test whether log(TEMP) can significantly explain log(DEATH) at the 5% level of significance. (ii) Test whether the variable SH has a negative effect, that is, the countries located in southern hemisphere have significantly lower death relative to other countries. Use 5% level of significance. (iii) What happens to number of deaths if the number of senior citizens in a country increases by 30,000, holding other variables fixed? (8 Marks)
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