R Studio

Introduction to Economic and Business Statistics
ECON. 3400
Project
– Due date: May 2nd, 11:59 PM (late submission is not allowed)
– Submit via Blackboard a zip file that contains both your R script and your dataset
– Use annotations to explain your topic, research question, variables, conclusions, and results on your R script (use # for annotations).
– You need to ensure that your codes work when I run them.
Topic:
– Find a topic of your interest, and a research question related to that topic.
Variables and dataset:
– You must have one dependent variable, one independent variable of interest, and at least two controls.
– Based on your research question, find a dependent variable (DV) and an independent variable (IV) of interest. You are interested to see the correlation between your DV and your IV of interest. Your dependent and independent variables of interest MUST be quantitative (or ordinal with at least five levels).
– Choose at least two more independent variables (controls). One of these controls MUST be binary (dummy).
– Build a dataset of these variables that has at least 50 observations. I choose 50 because it is the number of states in the US.
Your R-script must have these sections:
1- Introduction (25%)
– Explain your topic.
– Explain your research questions.
– Discuss your dependent variable and independent variable of interest. Why do you expect that they are correlated?
– Review your controls
– Discuss the sources of the data
2- Descriptive analysis (25%)
– Use tables, charts, and figures to discuss and examine your variables.
3- Analysis (40%)
3-1- Simple linear regression
– Run a simple linear regression model that includes your DV and IV of interest.
– Discuss the results of the regression
– A scatterplot of your DV and IV of interest + linear regression line
– Write the prediction function and check what your DV is if your IV = 0. What does this number mean? Is this equal to the intercept in the model? Explain why.
3-2- Multiple linear regression
– Run a multiple linear regression model that includes all of your variables.
– Discuss the results of the regression
– Write the prediction function. Choose two consecutive integers (for instance, 100 and 101), and calculate your DV if your IV of interest is those two numbers. You can choose any numbers for your controls. What is the difference between the values you calculated for the DV? Is this equal to the coefficient of the independent variable of interest? Explain why.
4- Conclusion (10%)
– Compare the results of your simple regression and multiple regression. Did the coefficient for the independent variable of interest change? Why?
– Discuss the answers you found for your research question.

Last Completed Projects