Nov 7 2006 I ECON 240A 1 Take home I Tuesday Nov 21 L Phillips Your report should have an executive summary of one to two pages that summarizes your findings in words for a non technical reader It should explain the problem being examined from an economic perspective i e it should motivate interest in the issue on the part of the reader Your report should explain how you are investigating the issue in simple language It should explain why you are approaching the problem in this particular fashion Your executive report should explain the economic importance of your findings The technical details of your findings you can attach as an appendix II The EXCEL data file carpoll contains information on three dependent categorical variables on preferences towards vehicles type size and country of manufacture This data is a sample file in JMP There are 303 observations in the poll obtained in a given geographical area The dependent variable type has three categories family sporty and work The variable size also has three categories large medium and small The variable country of manufacture also has three categories American European Japanese There are three explanatory variables in the data file The first is a quantitative variable age The second is an independent categorical variable gender which can be coded as a dummy variable male equals one and female equals zero The third explanatory variable is also a categorical variable married or single which can be coded as a dummy variable married equals one and single equals zero Nov 7 2006 ECON 240A 2 Take home I Tuesday Nov 21 L Phillips A Consider two categories for the variable type of vehicle family equals one and other equals zero 1 Use EXCEL to plot the zero one categorical variable familytype vehicle against the quantitative variable age Add a linear fit to the points a Is the relationship between the probability of favoring a family type vehicle and age positive or negative b What is the linear regression fit approximating 2 Use EViews to estimate a linear probability model for type of vehicle i e family yes no as explained by age gender and marital status coded as explained above a Which explanatory variables are significant and do they have a positive or negative impact on the probability of desiring a family type car b How much does the marital status of married increase the probability of favoring a family type car for a given age c Use Eviews to plot the fitted or estimated probability of favoring a family type car against age i Why are there four lines in the plot Nov 7 2006 ECON 240A 3 Take home I Tuesday Nov 21 L Phillips ii At approximately what age do married women begin to favor a family type vehicle iii At approximately what age do single men begin to favor a family type vehicle iv Explain how this result affects advertising on TV for different types of vehicles by demographic group 3 Use EViews to estimate a logit probability model for type of vehicle i e family yes no as explained by age gender and marital status coded as explained above a Does this estimated logit model do a better job of predicting those who favor a family type car or those who do not
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