Note: Use 5% level of significance unless you are told otherwise

Welfare of Ghanaian household is determined by several factors. The collective welfare of household members is expected to influence and be influenced by the well-being of individual members due to the complex intra-household interactions. For example, if the income received by the breadwinners in a household is shared among household members including dependent children, then the physical well-being of breadwinners may affect directly or indirectly the well-being of the rest of household members, especially the well-being of dependents such as children and elderly. Motivated by this, a post graduate student of UEW business school aimed at assessing the determinants of household welfare in Ghana and how they vary across location. The student collected data on several variables as contained in the file Field_data2022n SPSS file. In this data file, welfare is measured in monetary terms (GHS), defined as the amount of money a household has. Location is measure as urban and rural (loc2). The independent variables of interest to the student are sex, age, education, household size, employment status (emp_status), and poverty status (pstatus).

Required

(a) Perform appropriate descriptive analysis to assess the distribution of the independent variables across space/location. Before the analysis, recode employment status into unemployed, employee, self-employed, and retired/inactive. Similarly, recode age into categories: youth (15-35 years), adults (36 60 years) and aged (above 60 years). Write a brief report about the results obtained.

(b) The student sought to test the association between five independent variables (sex, age category, education, employment status (recoded), and poverty status) and location.

i. State and explain the choice of a statistical test that will be appropriate in testing the association between the independent variables and location?

ii. What are the assumptions underlying this test?

iii. Perform the test and report your findings. (Remember to state your hypotheses and decision rule for each of the test).

(c) From the literature review, the student found that the average welfare of Ghanaians is GHS3,800. The student wish to test if the average welfare of the sample is different from the average welfare stated in literature.

i. State and explain the choice of a statistical test that will be appropriate in performing this analysis?

ii. What are the assumptions underlying this test?

iii. Perform the test and report your findings. (Remember to state your hypotheses and decision rule).

(d) The student further wishes to assess if the welfare of Ghanaians varies by location.

i. State and explain the choice of a statistical test that will be appropriate in performing this analysis?

ii. What are the assumptions underlying this test?

iii. Perform the test and report your findings. (Remember to state your hypotheses and decision rule).