We investigate crop yields in a developing country. We model the crop yield (yie

Question

We investigate crop yields in a developing country. We model the crop yield (yield) of family owned farms. Some of the farms receive money from a program that teaches sustainable argriculture The dummy variable money takes the value 1 for farms that receive money and the value 0 for farms that do not receive money . The dummy variable nomoney takes the value 1 for farms that do not receive money and the value 0 for farms that receive money. Farms grow cash crops (crops that are sold for profit) and subsistence crops (crops that are grown for own consumption). Some farms grow both. There are no farms that grow neither.

Explanation / Answer

First of all I don't understand why the 1st picture is given. That is nowhere related to the question that is asked.

we can use quarterly moving average on the data first. Then the seasonal variability (if any ) in the data will be moved away. Then we can use the regression equation to estimate the trend.

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