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Project I

Project I. Fall 2009. Bladder. Kidney. Leukemia. Lung. Question 1: Excel, Tools, data Analysis, Correlation. R 2 = r 2 for bivariate case F 1, n-2 =[R 2 /1] ÷ [1-R 2 ]/ (n-2) = 0.0784*42/0.9276 F 1, 42 = 3.57, critical value @ 5% F 1, 40 =4.08. Eviews. Gen eff =@rfdist(1,42)

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Project I

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  1. Project I Fall 2009

  2. Bladder Kidney Leukemia Lung

  3. Question 1: Excel, Tools, data Analysis, Correlation R2 = r2 for bivariate case F1, n-2 =[R2/1] ÷ [1-R2 ]/ (n-2) = 0.0784*42/0.9276 F1, 42 = 3.57, critical value @ 5% F1, 40 =4.08

  4. Eviews Gen eff =@rfdist(1,42) Gen density=@dfdist(eff, 1, 42)

  5. Lung & Kidney Correlation Accept H0 3.57 4.08 critical

  6. Question 1: Excel, Tools, data Analysis, Correlation R2 = r2 for bivariate case F1, n-2 =[R2/1] ÷ [1-R2 ]/ (n-2) = 0.0784*42/0.9276 F1, 42 = 3.57, critical value @ 5% F1, 40 =4.08

  7. b. Cigarettes smoked per Capita is significant, Prob. 7/10,000 happen by chance Regression is significant Eventhough R2 = 0.50, Other unspecified factors Ar work a. Coefficent 0.00445, if cigarettes smoked goes up by one per capita, death rate per 100,000 goes up by 0.004453

  8. If cigarettes smoked per capita goes up by about 1%, i.e. by 25, then death rates for lung cancer go up by 25*0.0044 = 0.11125 per 100, 000 or deaths per year increase by 11,125 Or 0.11125/ 19.653, or about 0.6%. Called calculating elasticities at means

  9. Or run a log log regression to estimate elasticity of 0.7

  10. 4. c

  11. Copy fitted

  12. Paste into a open group window After selecting edit

  13. 4. d 2.8*10-12

  14. White Test for Heteroskedasticity

  15. In Excel

  16. 4e.

  17. Q 4e: Do DC and Nevada Bias Results?

  18. b a

  19. 5.C Are Residuals Normal?

  20. 5.d

  21. Bladder Cancer and Cigarettes

  22. 6

  23. 7 b a

  24. 7. C Are the Residuals Normal?

  25. Economic and Health Significance • Smoking is hazardous to your health, especially for lung, bladder and Kidney cancer • Intensity of smoking, e.g cigarettes smoked per dollar of income and income per capita affect lung cancer death rates • Smoking intensity may be reduced by advertising health hazards and by imposing an excise tax • Development, as measured by income per capita may create dangerous toxins that cause lung cancer, e.g. acid rain from coal smoke stacks, particlates in the air, smog etc.

  26. Beyond The Project

  27. Lung = a{[(cigs/pop)/(Inc/pop)][Inc/pop]}b exp(e) lnLung = lna + b* cigs/$ + b*(Inc/pop) + e lnLung = lna + b*(cigs/pop) – b*(inc/pop) + b(inc/pop) + e lnLung = lna + b*(cigs/pop) + e

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