Journal Article You should save your file as \"Lastname_Firstname_ ECO578_Fall2016\" You can submit your work either as a PDF or WORD File (Make sure Only ONE file is submitted) You can attach your Excel file as your appendix (only ONE Excel file is allowed) *Only one Word or PDF file and one Excel file should be submitted in the drop box Due: Friday, December 2, 2016 by 11:59 a.m (Central Time) Happiness Salary Use the given Sample data for middle class earning information and follow the instructions below: Instructions 1. Run a regression using the given data. (With Happiness benchmark as the dependent variable and median household income as the independent variable) 2. Compare the results of question (1) with another regression equation obtained by regressing the happiness bench mark on the variables : middle class lower bound and middle class upper bound. 3. Which of the models do you prefer? Why? 4. Interpret your results for (1) and (2). 5. In writing your paper, you should start by indicating the objectives of the study and value addition thereof from the business context. Also, discuss the methodology and conclusions. **Range: 5 pages + Excel printout results** **You can use EXCEL or any other software** ** You need to include your printout in your submissions** Paper Format The layout and format of the paper should include the following sections: Title page, Abstract, Introduction, Methodology, Empirical-Results, and Discussion, Conclusions. a) Abstract: is a very concise summary of the paper. b) Introduction: Tells the reader about the topic. Specifically, it should start with 'the purpose of this paper is to examine....' 'What the issue is', 'what is known about it', and the specific focus? Put a 1 business context to it - write the value added by your work or what businesses can gain from the knowledge of the determinants of incomes. c) Methodology: You should be able to explain what method you are using for your work. For example, you can start with telling the reader that the 'ordinary least squares method (OLS) was used to obtain estimated coefficients...' (Then write more). You should be able to write the equation from the Excel result. We expect to see you... 1. Using the excel result to generate the equation. 2. Find the standard error of each variable. 3. Find the t-stat of each variable. 4. Find the p-value of each variable. 5. Find the F-value of the equations EXAMPLE: = 1.24 + 1.71X1 - 0.83X2 - 2.12X3 (6.79) (1.43) (0.22) (0.85) T-stat [0.18] [1.20] [3.78] [2.48] P-value 0.857 0.247 0.002 0.025 d) Empirical-Results: Should tell what was found from the computed data. Using Chapter 10 and 11 for helping you interpret your result. For instance, you should interpret the Coefficient of Determination ( ), Ftest, t-test, p-value and etc. In addition, your result should use the hypothesis equation. e) Discussion: Describes what your findings mean in the light of the information presented in the introduction. It is the interpretive segment of the paper and loops back to answer the issues raised in the introduction. Remember to discuss questions 2 and 3. f)Conclusion: What conclusion would you draw based on your study. **Remember that the results section should include hypothesis testing for a t-test about each slope coefficient and an F-test for the overall regression model. EXAMPLE: For the t-test, it is written like this: Note: You have to decide whether to use one-tail or two-tail test You need to follow chapter 9 materials and declare your alternative hypothesis in each case very well F-test: Note: mention what is used in your hypothesis testing. 2 Data Sample Data for Middle Class Earnings 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 State Alaska Arizona Alabama Arkansas Carlifornia Connecticut Colorado District of Columbia Delaware Florida Georgia Hawaii Illinois Idaho Iowa Indiana Kansas Kentucky Louisiana Massachusetts Maryland Mississippi Missouri Minnesota Michigan Montana Maine New Hampshire New Jersey New Mexico New York Nebraska Nevada North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Dakota South Carolina Texas Tennessee Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Happiness Benchmark Median Household Income Middle Class Lower Bound Middle Class Upper Bound 98,850 72,483 48,158 144,474 76,350 48,510 32,340 97,020 69,300 42,849 28,566 85,698 69,375 40,511 27,007 81,022 95,352 60,190 40,127 120,380 93,900 67,098 44,732 134,196 75,300 58,823 39,215 117,646 104,700 67,572 45,048 135,144 79,275 57,846 38,564 115,692 74,775 46,036 30,691 92,072 69,525 47,829 31,886 95,658 122,175 68,020 45,347 136,040 71,625 56,210 37,473 112,420 70,650 46,783 31,189 93,566 69,375 52,229 34,819 104,458 68,025 47,529 31,686 95,058 68,475 50,972 33,981 101,944 67,500 43,399 28,933 86,798 71,475 44,164 29,443 88,328 90,975 66,768 44,512 133,536 88,275 72,483 48,322 144,966 65,850 37,963 25,309 75,926 70,275 46,931 31,287 93,862 76,350 60,702 40,468 121,404 70,425 48,273 32,182 96,546 73,950 46,972 31,315 93,944 82,275 46,974 31,316 93,948 87,075 64,230 42,820 128,460 95,700 70,165 46,777 140,330 70,050 43,872 29,248 87,744 99,150 57,369 38,246 114,738 68,775 51,440 34,293 102,880 75,150 51,230 34,153 102,460 73,350 45,906 30,604 91,812 75,300 55,759 37,173 111,518 70,575 48,081 32,054 96,162 67,800 45,690 30,460 91,380 91,275 50,251 33,501 100,502 76,200 52,007 34,671 104,014 90,675 55,902 37,268 111,804 73,725 48,947 32,631 97,894 72,075 44,163 29,442 88,326 69,600 51,704 34,469 103,408 67,265 44,297 29,531 88,594 69,750 59,770 39,847 119,540 87,900 52,578 35,052 105,156 72,750 62,666 41,777 125,332 76,950 58,405 38,937 116,810 73,950 41,253 27,502 82,506 74,100 51,467 34,311 102,934 69,900 58,752 39,168 117,504 3 How to Submit Your Journal Due: Friday, December 2, 2016 by 11:59 a.m. (Central Time) You should save your file as \"Lastname_Firstname_ ECO578_Fall2016\" You can submit your work either PDF or WORD file (Make sure Only ONE file is submitted) You can attach your Excel file as your appendix (only ONE Excel file is allowed) *Only one Word or PDF file and one Excel file should be submitted in the drop box To submit your file(s), select \"Module3: Journal Article\" in Dropbox 4