Learning Goal: I’m working on a micro economics question and need an explanation and answer to help me learn.
R – Transformations, units, and elasticity
1. In this exercise you will transform variables, check the effect of changes in units, and calculate the elasticity. Use the Galtonf.csv file for the data for this assignment. You can find it on our canvas site, under files, data, R exercise 4. The Galton data holds an important historical place in the development of statistics and it was the analysis of this data that gave rise to term regression. I’ve put the paper on our canvas site, under Hand outs. It has the title “Regression towards Mediocrity in Hereditary Stature”. The data in Galtonf contains the data for daughters. There is also a codebook with the variable descriptions.
2. Load Galtonf.csv into R as a data frame. I named my R data frame d_galtonf.
3. Run a regression of height on mother. This regression will be the benchmark. I called mine r_1.
4. View your result in a stargazer regression table.
5. The data in d_galtonf is in inches. The first transformation is to transform inches into feet. The code is
d_galtonf$heightf <- d_galtonf$height/12
The first term in the code tells R to create a new variable in the data frame d_galtonf and call it height; and the new variable is defined as the height variable in d_galtonf divided by 12.
6. Now run a regression changing the y variable from height to heightf. I called mine r_2 Before you look at your result, calculate what the new estimates of b0 and b1 will be.
7. Create a stargazer table that displays both regressions. The code is
stargazer(r_1, r_2, type=”text”)
8. What your expectation of the change in estimates correct?
9. Now transform the x variable, mother, into into inches. I called the new variable mother. The code is
10. Now run a regression changing the x variable from mother to motherf. I called mine r_3. Before you look at your result, calculate what the new estimates of b0 and b1 will be.
11. Create a stargazer table that displays all three regressions. The code is
stargazer(r_1, r_2, r_3, type=”text”)
12. Now transform both the y variable and the x variable into natural logarithms. I called my transformed mother variable lmother. The code for mother is
d_galtonf$lmother <- log(d_galtonf$mother)
13. Run the regression of the log of height on the log of mother.
14. What is the interpretation of the estimate of b1?
15. To make a calculation using regression results and summary stats requires installing a new package called broom. The code is
Remember to “comment” out the install.packages once you have installed broom.
16. Now calculate the elasticity of daughter’s height with respect to mother’s height at the means. The first step is to create a “tidy” set of results for the first regression, r_1 (regression output). The code is
17. Next we name the estimate of the coefficient on mother in results. The code is
18. We now calculate the elasticity at the mean. The code is
elasticity <-mean(d_galtonf$mother)*beta1 hat/mean(d_galtonf$height)
To see the elasticity the code is
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Paper Helper has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!
At Paper Helper, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.
You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!
Editing and Proofreading
Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.
We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.
College Essay Writing
If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!
Quality Assignment/Homework Help
We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.