Use the given Sample data for middle class earning information and follow the in

Question

Use the given Sample data for middle class earning information and follow the instructions below:

c) Methodology: You should be able to explain what method you are using for your work. For example, you can start with telling the reader that the ‘ordinary least squares method (OLS) was used to obtain estimated coefficients. You should be able to write the equation from the Excel result.

1. Using the excel result to generate the equation.

2. Find the standard error of each variable.

3. Find the t-stat of each variable.

4. Find the p-value of each variable.

5. Find the F-value of the equations

EXAMPLE: = 1.24 + 1.71X1 - 0.83X2 - 2.12X3 (6.79) (1.43) (0.22) (0.85) T-stat [0.18] [1.20] [3.78] [2.48] P-value 0.857 0.247 0.002 0.025

Alaska

State Happiness Benchmark Median Household Income Middle Class Lower Bound Middle Class Upper Bound

Alaska

118620 86980 57790 173369 Arizona 91620 58212 38808 116242 Alabama 83160 51419 34279 102838 Arkansas 83250 48613 32408 97226 California 114422 72228 48152 144456 Connecticut 112680 80518 53678 161035 Colorado 90360 70588 47058 141175 DC 125640 81086 54058 162173 Delaware 95130 69415 46277 138830 Florida 89730 55243 36829 110486 Georgia 83430 57395 38263 114790 Hawaii 146610 81624 54416 163248 Illinois 85950 67452 44968 134904 Idaho 84780 56140 37427 112279 Iowa 83250 62675 41783 125350 Indiana 81630 57035 38023 114070 Kansas 82170 61166 40777 122333 Kentucky 81000 52079 34720 104158 Louisiana 85770 52997 35332 105994 Massachussetts 109170 80122 53414 160243 Maryland 105930 86980 57986 173959 Mississippi 79020 45556 30371 91111 Missouri 84330 56317 37544 112634 Minnesota 91620 72842 48562 145685 Michigan 84510 57928 38618 115855 Montana 88740 56366 37578 112733 Maine 98730 56369 37579 112738 New Hemphire 104490 77076 51384 154152 New Jersey 114840 84198 56132 168396 New Mexico 84060 52646 35098 105293 New York 118980 68843 45895 137686 Nebraska 82530 61728 41152 123456 Nevada 90180 61476 40984 122952 North Carolina 88020 55087 36725 110174 South Dakota 90360 66911 44608 133822 Ohio 84690 57697 38465 115394 Oklahoma 81360 54828 36552 109656 Oergon 109530 60301 40201 120602 Pennsylvania 91440 62408 41605 124817 Rhode Island 108810 67082 44722 134165 South Dakota 88470 58736 39157 117473 South Carolina 86490 52996 35330 105991 Texas 83520 62045 41363 124090 Tennessee 80718 53156 35437 106313 Utah 83700 71724 47816 143448 Vermont 105480 63094 42062 126187 Virginia 87300 75199 50132 150398 Washington 92340 70086 46724 140172 West Virginia 88740 49504 33002 99007 Wisconsin 88920 61760 41173 123521 Wyoming 83880 70502 47002 141005

Explanation / Answer

All linear regression output is there .

(a) LInear equation

Y = 32904 + 10.72 * Median Household income + 46.330 * Middle Class Lower Bound - 20.328 * Middle Class Upper BOund

(b) Standard error of each variable

(c) t- stat of each variable

(d) P - value for each variable

(e) F- value of the equations

F- value = 16.53616

SUMMARY OUTPUT Regression Statistics Multiple R 0.716589 R Square 0.5135 Adjusted R Square 0.482447 Standard Error 10246.07 Observations 51 ANOVA df SS MS F Significance F Regression 3 5.21E+09 1.74E+09 16.53616 1.8E-07 Residual 47 4.93E+09 1.05E+08 Total 50 1.01E+10 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 32904.212 9257.510 3.554 0.001 14280.505 51527.919 14280.505 51527.919 Median Household Income 10.721 36.892 0.291 0.773 -63.496 84.937 -63.496 84.937 Middle Class Lower Bound 46.330 179.975 0.257 0.798 -315.734 408.394 -315.734 408.394 Middle Class Upper Bound -20.328 56.899 -0.357 0.722 -134.794 94.138 -134.794 94.138

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