STATISTICS and STATA

| December 15, 2015

Project Outline:

a.     Provide description of the data collection procedure. Describe the population of interest and whether the sample is a good representation of the population of interest. That is, explain if there are any possible sampling biases. Furthermore, discuss if there are any other biases as well.

b.     Decide what will be the main response variable of interest for your project and explain why you find this particular variable interesting. Provide descriptive statistics of this variable.

c.     Pick a continuous explanatory variable. Explore whether there is a bivariate association between your response variable and your main explanatory variable. Explain what is the effect or relation that you are trying to measure and why.

d.     Pick a binary explanatory variable. If there is none of interest consider creating one of your own from an existing continuous variable that you considered in part c. Compare whether the response variable differs across the groups defined by the chosen binary variable. Provide a formal analysis of this comparison via the hypothesis tests and confidence intervals. Describe your null and alternative hypothesis and your decision on whether to reject or not reject the null hypothesis. Interpret your results on this comparison of groups.

e.     Perform a univariate regression analysis between the response and an explanatory variable of interest. Provide an interpretation of the estimated coefficients. Provide an analysis and a discussion on the statistical and quantitative significance of your findings. Again it would be helpful if you would state your null and alternative hypothesis and your decision whether to reject or not reject it. Discuss whether the independent variable is a good predictor of the response variable.

f.      Discuss what might be the shortcomings of performing just the bivariate analysis and how one would try to address it. That is, explain the purpose of your analysis and whether your objective is obtained with bivariate analysis or whether some issues might arise.

g.    Consider adding additional control variables and performing multivariate regression analysis. Discuss whether your estimated coefficient between the response and main explanatory variable has changed and if so, then why. Provide a statistical and quantitative analysis of your findings of the multivariate regression analysis. Find the values of R-squared and test for the collective influence of the explanatory variables. Interpret your results. Point out any interesting results that you have obtained.

h.    Explore whether there is some interaction between predictors in their effects on the response variable.

i.      Provide a summary of your project and its findings. A possible starting sentence for the summary could be along those lines:

“I have explored whether the explanatory variable(s) …… has an effect on the response variable ..… . My findings are that …… ”

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