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ECO 313A, 2021: ASSIGNMENT 3; 201924638 Q1.1 Model 1: totmhinc = β
ECO 313A, 2021: ASSIGNMENT 3; 201924638 Q1.1 Model 1: totmhinc = β
Q1.1
i. Model 1 : totmhinc = β0 + β1*head_ age + β2*hholdsz + β3*Dhead_sex_1 + ε
ii. Household size (hholdsz) and male gender variables are statistically significant at 1%
level.
iii. One additional head age is associated with a decrease in total monthly household income
(totmhinc) of R12, holding the household size (hholdsz) and male household head
constant.
ECO 313A, 2021: ASSIGNMENT 3; 201924638
Q1.2
Q1.3
Excluding the constant, p-value was highest for variable 233 (URBAN)
Q3
Q3.1
PCINC = β0 +β1* head_age + β2* African +β3* Coloured +β4* Indian + ε
Q3.2
Q3.3
PCINC = 10111 − 40* head_age − 5563* African − 5009* Coloured − 3605* Indian + ε
Head age, African , Coloured and Indian population heads variables are all statistically
significant at 1% level.
One additional head age is associated with a decrease in total monthly household income
(totmhinc) of R40, holding constant the African, Coloured and Indian head population
groups.
Relative to white head population group, African/black head population group have a
total monthly household income (totmhinc) that is R5563 less, holding constant the head
age, coloured and Indian heads population groups.
ECO 313A, 2021: ASSIGNMENT 3; 201924638
Relative to white head population group, coloured head population group have a total
monthly household income (totmhinc) that is R5009 less, holding constant the head age,
African and Indian heads population groups.
Relative to white head population group, Indian head population group have a total
monthly household income (totmhinc) that is R3605 less, holding constant the head age,
coloured and African heads population groups.