Date: 29/10/2023

Satistical Software Application Hometake Assignment-I

It is individual assignment which carries 50% of the course weight. The submission date
will be specified in class. Any form of plagiarism is not tolerated (results zero mark).
While doing the assignment, please do not forget to use dofile editor and you must
attach it at the end of your answer in the form of annexis. To be more rewarded, you
must express or give economic intution for results generated from the stata.

Assignment must be given in hardcopy.

1. Using the Demand data, please undertake the following activities using stata software,
where P is price and Q is quantitiy demand.

a) twoway(scatter p,Q)

b) twoway (scatter p q) (lfit p q)

c) twoway (qfit p q)
d) twoway (scatter predict1 q, sort)
e) twoway (line predict1 q, sort)
f) twoway (scatter p q) (scatter predict1 q, sort)
g) twoway (scatter p q) (lfit p q) (scatter predict1 q, sort)
2. Using house data, undertake the following activities. NB, monthlyrent is the dependent
variable, whereas monthlyincome, and hhsize are independent variables.

a) Regress monthlyrent on monethlyicome and report and interpret the result

b) Regress monthlyrent on hhsize and report and interpret the regression result
c) Regress monthlyrent on monthlyincome and hhsize and report and interpret the
regression result

d) Undertake correlation of the three variables and report the result

e) Predict the residual of the three regression
f) Based on question “c” result, check the normality, the multicollinearity,
heteroskedasticity, autocorrelation test and specification tests
3. Using rural nonfarm data, undertake the following activities. NB, pparticipariondummy is
dependent variable which take 1 if household participate in nonfarm economic
activities, and 0 other ways (if not participate). Whereas familysize, farmincom,
distance (from market in Km), creditdummy (access to credit take 1 if yes and 0 other
ways) and trainingdummy (access to training, take 1 if yes and 0 other ways) are
independent variables.

a) Regress pparticipariondummy on familysize, farmincom, distance, creditdummy

and trainingdummy (using logit and probit regression)

b) Report odd ratio of logit regression and interpret the result

c) Report the marginal effect of the logit regression and interpret the result
d) Undertake Collin /VIF test to check the presence of multicollinearity

Good Luck!!