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Data Analysis - Assignment Example

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The first two letters of my surname are M and U which are the 13th and the 21st letter of the English alphabet, respectively. So I shall…
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Data Analysis
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Download file to see previous pages Manually (but randomly) select n (20 ≤ n ≤ 25) countries (do not use any random selection mechanism) to construct the data set. Enter the observations on each of the four variables corresponding to each country you have selected into a Stata data file and save this file. Your Stata data editor should now show a data matrix with dimensions (n X 4) where the value of n is chosen by you as per the requirement.
i Select any one independent variable from the three in your dataset and denote it by X. Denote the dependent variable IN by Y. Use a calculator/software and your sample to calculate ∑X, ∑Y, ∑XY and ∑X2. Use these values to write down the pair of ‘normal equations’ the solutions of which give the constant term and the slope of the Ordinary Least Squares line. (15 marks)
iv Construct the multiple regression model by denoting the dependent and the selected independent variables using the roman characters Y, X2, X3 and X4, respectively. For example, if you choose Urban population, Literacy Rate and GDP then you should define the model as
Run a Stata regression of the dependent variable Y values on the three explanatory variables you have chosen and a constant. Use the regression output to explain why and how the F-statistic was calculated by the software and how it can be used to test for the overall relevance of the regression model. (30 ...Download file to see next pagesRead More
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