Part 1 DESCRIPTIVE STATISTICS

(a) For per capita income (variable name is "PerCapitalne") COMPUTE and INTERPRET the follow-

ing[Hint: you will need to specify the 'detail" option after the summerize command (see the cheat

sheet)]:

(b) Sample mean

(ii) Sample standard deviation

(iii) Sample skewness

(iv) Sample kurtosis and

(v) Sample size.

(vi) Standardize "PerCapitalne" and find the mean and variance. You do this by using the extended generate

command (egen) in STATA in combination with the 'std' fuention. Are the values what you expected?

(b) Use your printout from (a) to construct a 99% confidence interval for the population mean of per capita

income. Use those results to construct the relevant confidence intervals by hand (using your calculator)

and should type out that work for credit.

(c) Do the same thing for the 95% confidence interval. What is the point in calculating these confidence

intervals?

(d) Construct a scatterplot of the county's unemployment rate in 2013 (UnempRate2013) variable on per

capita income (PerCapitalne) and present this graph in your answer. (Note that you may need to

scroll down the variable list to find the unemployment rate for the year 2013. Exporting the graphs

from STATA is easy-simply follow the steps from class notes!). Does there appear to be a relationship

between the variables and if so, is it an intuitive relationship? Explain your answer.

(e) Construct a scatterplot of the "Metro2013" variable (which is a dummy variable for metro status versus

non-metro in 2013) on per capita income (PerCapitalne) and present this graph in your answer. Does

there appear to be a relationship between these variables and if so is it an intuitive relationship? Explain

your answer.

(f) Now, restrict to the subsample of counties that are metro areas (hint: those with "Metro2013-=1").COMPUTE

and INTERPRET the: (i) Sample mean

(ii) Sample standard deviation for both PerCapitalne and UnempRate2013.

(iii) Sample size.

(g) Now, restrict to the subsample of counties that are non-metro (hint: those with "Metro2013-=0").COMPUTE

and INTERPRET the statistics similar to those calculated in (f)

(h) Construct a 90% confidence interval for the difference between the means of per capita income across

metro and nonmetro counties. Note that you must use the difference in means version of the standard

error in order to compute properly.

(i) Explain whether or not there is evidence to support the hypothesis that there is a statistically significant

difference between the means of per capita income for the two groups based on metro/non-metro status.

Relate your answer to your findings in (h).