File: The file Corruption.xls contains country-level data on two variables. One of these is a measure of
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 in your model? (Plausible stories could be told in which either variable could be the independent (or dependent) variable.) 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. c) (10) What percentage of the variation of your dependent variable is explained by the independent? d) (10) Also "by hand," calculate the variance of B. Next, calculate the test statistic and p- value for a hypothesis test that the population slope is zero. (The p-value is going to be extremely small and not be on any t-table. Figure out how you can use Excel to calculate it. (Look up the t.dist functionality in the help menus.) 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 in your model? (Plausible stories could be told in which either variable could be the independent (or dependent) variable.) 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. c) (10) What percentage of the variation of your dependent variable is explained by the independent? d) (10) Also "by hand," calculate the variance of B. Next, calculate the test statistic and p- value for a hypothesis test that the population slope is zero. (The p-value is going to be extremely small and not be on any t-table. Figure out how you can use Excel to calculate it. (Look up the t.dist functionality in the help menus.)
Expert Answer:
Answer rating: 100% (QA)
Carmop to 13000 by The file Corruptionxls contains countrylevel data on two variables One of these is a measure of perceptions of political corruption This data is assembled by the organization Transp... View the full answer
Related Book For
Statistics Unlocking The Power Of Data
ISBN: 9780470601877
1st Edition
Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock
Posted Date:
Students also viewed these mathematics questions
-
This case study on project evaluation is applicable for beginning courses in corporate finance or finance strategy. Two alternative investment options are available to evaluate. Challenges are...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
To encourage _________, leaders are encouraged to study the principles of teamwork that prevail in clinical contexts for their application to managerial planning and decision-making contexts....
-
What do we mean when we say that accounting is a means rather than an end?
-
How have users needs impacted the development of accounting principles for the reporting of state and local government units?
-
Show how the conglomerate discount leads to an increase in the cost of equity.
-
Four-drive theory is conceptually different from Maslows needs hierarchy (as well as ERG theory) in several ways. Describe these differences. At the same time, needs are based on drives, so the four...
-
Find a vector u that is parallel to the yz-plane and perpendicular to the vector v = (3,-4, 4). u = D
-
Using the Public MACRO BITCOIN scorecard spreadsheet (linked in its associated masterclass lesson - Long Term 32), create a COPY of it and perform a complete analysis for the date 22/2/2022....
-
Roland Company sponsors a defined benefit pension plan for its employees. The company's actuary provided the following information about the plan at the end of 2026. Projected benefit obligation on...
-
Suppose the wind is blowing with a 1000 LB magnitude force F in direction N60 W (60 west of North) behind a boat's sail How much work does the wind perform in moving. in a northerly direction Work :=...
-
1. A top-fuel dragster starts from rest and has a constant acceleration of 40.0 m/s. What are the (a) final velocities and (b) displacements of the dragster at the end of 2.0 s and at the end of...
-
The price of IBA stock is $101. It will either increase by $10.2 or decrease by $8.5 at the end of month 1. If the price is up in the first month, it will either increase by $16.1 or decrease by $21...
-
"What are the functions and characteristics of the status registers, stack pointers, circular buffers, single repeat registers, and temporary registers in the C55x digital signal processor?"
-
With the rise of explainable AI (XAI),how can we design and analyze algorithms that not only achieve high performance on a specific task but can also demonstrably justify their decisions in a way...
-
Could you please help me complete the T ledgers in Questions 2. Question 2 (Note: Although this question is based on the Skate 'n' Surf business the accounts, amounts and transactions involved may...
-
Organizations are increasing their use of personality tests to screen job applicants. What are some of the advantages and disadvantages of this approach? What can managers do to avoid some of the...
-
Every Fourth of July, Nathans Famous in New York City holds a hot dog eating contest, which we discuss in Exercise 2.98. Table 2.21 on page 86 shows the winning number of hot dogs and buns eaten...
-
About 20% of movies coming out of Hollywood are comedies, Warner Bros has been the lead studio for about 9% of recent movies, and about 2% of recent movies are comedies from Warner Bros. Let C denote...
-
The dataset StudentSurvey, introduced on page 4, contains information on hours of Exercise per week and GPA. Here we use a slightly modified version called GPAGender which eliminates missing values...
-
There was the short story, and the longer more complex story. Iceland had seen both. And what was the moral of the story? Was the moral that its better to be a big fish in a little pond, or was it...
-
International Capital Flows: Public and Private. Major multinational organizations (some of which are listed next) attempt to track the relative movements and magnitudes of global capital investment....
-
Bretton Woods. What was the foundation of the Bretton Woods international monetary system, and why did it eventually fail?
Study smarter with the SolutionInn App