Econ 385 Statistics Data Analysis Assignment

Econ 385 Statistics Data Analysis Assignment

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  1. Type your data assignment in MS word and then convert it into a pdf for uploading on to Canvas. Use

your last name for naming the final submission pdf file.

  1. In your pdf file you should only include:
  • R code
  • Relevant output. Simple rule to follow—do not include graphs, tables that you don’t want to talk about directly in your answer. Read each question carefully and decide what output will be relevant to support your analysis. I will penalize for including needless details in your assignment. This is a skill that you must learn if you want to survive in this industry-no employer will tolerate waste of space and time.
  • I will not answer any questions on R that are already covered in the video tutorials. Part of the grade is based on how you handle R programming.
  • Answer in as much details as possible. Interpretation of findings and thoughtful comments on estimation results will be rewarded in my grading.
  • This is an individual assignment so do not work in groups. Primary aim of this assignment is to teach you how to carry out an independent data analysis. If I see too much similarity between two assignments that will count as violation of the honor code and suitable action will be taken against both parties involved. I will be using the Turnitin app on Canvas for checking for plagiarism.  Econ 385 Statistics Data Analysis Assignment


Download the data set called campus.csv from Canvas. It contains data from the U.S. Department of Education’s Campus Safety and Security program for the year 2017. You have information on 374 colleges (4-year or above) across the U.S. on the following variables:

  1. campus name: name of the college 2. enroll: total student enrollment 3. status: college status: public or private 4. crime: annual number of crimes on college campus

Answer the following questions.

  1. Draw a scatter plot where natural log of crime is on the y-axis and natural log of enrollment is on the x-axis, separately for public and private colleges (so you will have 2 scatter plots here). Comment on the nature of the relationship between crime and enrollment and how it differs by college status.
  2. Define what we mean by the level effect in the context of this example. Now estimate a regression model where natural log of crimes is a function of natural log of enrollment and a dummy variable that takes value of 1 if the campus is private and 0 otherwise. Write down the regression equation you estimate and provide the estimation results in a table.
  3. Interpret the estimated coefficient of each variable for the model you estimate in part b. Is the level

effect of college status statistically significant? Explain.

  1. Define what we mean by interaction effect in the context of this example. Now, using Wald test formally test whether we should add an interaction term between enrollment and college status being private to our regression model from part b. In this answer you must include the restricted and unrestricted model equations, the null and the alternative hypotheses, R output for the Wald test, and your conclusion.
  2. Based on your answer to part d, write down the regression equation of your final model. Do you find evidence for level effect? What is the magnitude of this effect? Do you find evidence for interaction effect? What is the magnitude of this effect?  Econ 385 Statistics Data Analysis Assignment
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