ECON 350 Applied Economics

2. Use Stata and the data in DISCRIMDTA to answer this question. These are zip code- level data on prices for various items at fast-food restaurants, along with characteristics of the zip code population, in New Jersey and Pennsylvania. The idea is to see whether fast- food restaurants charge higher prices in areas with a larger concentration of minorities. (i) Compute the average, minimum, and maximum values of prpblck. Describe the meaning of these summary statistics. (ii) Find the average value of income in the sample, along with its standard deviation. In particular, what are the units of measurement of income? (iii) Consider the following regression model to explain the price of soda in terms of prpblck and income: psoda = ) + iprpblck + zincome + u. If there is discrimination against blacks, what will be the sign of