Reference no: EM13236050

QUESTION 1:

Determine if people who watch jeopardy like to "think" more. Depending on your results, should a political candidate have advertisements that require more or less thinking during this time slot? Explain.

QUESTION 2:

Is there a difference in the pre-thermometer score for the Republican candidate between respondents that identify themselves as strong Democrats vs. strong Republicans? Do you expect this outcome? Explain.

QUESTION 3:

Is there a difference in the pre vs. post thermometer score for the highly opinionated group? How does this compare to the group that is not very opinionated? Explain.

QUESTION 4:

Assume the sample respondents are voters. Previous studies suggest the average age of a voter is 45. Given this statistic, is this sample representative of the voting population?

QUESTION 5:

The cigarette data set contains the following information. For each year, there are descriptive variables for the number of packs sold as well as pertinent characteristics of the state (e.g., population, price per pack of cigarettes, and the consumer price index).

a. Create a time trend graph of total cigarette sales (aggregate, not by state) per year and the average price per pack, per year (take the price per cigarette pack and divide it by CPI/100) comment on any relationship.

b. Test whether or not the actual price (price per cigarette pack divided by CPI/100) and the minimum price from a nearby state (divided by CPI/100) are correlated. Comment on this relationship, does it make sense?

c. How would you measure the heterogeneity in the consumption of cigarettes across the states? Determine which three states are the "most different" from the rest.

d. Create a regression model using the information obtained from the previous steps and calculate the price elasticity of cigarettes using your model. Does the result make sense? How could you improve the model?

e. Create two dummy variables: one if the year is greater than or equal to 1971 and a second if the year is greater than or equal to 1984. In 1971, the US government banned television ads related to smoking. In 1984, the US government required the surgeon general's warning on all tobacco products. Insert these dummy variables into the regression in the previous step. Comment on your results briefly in terms of how much the new model is better/worse than the old model.

f. Write a brief statement (no more than two paragraphs) on your findings of how well the two government interventions to try and stop smoking impacted both prices and overall sales. Conduct any additional tests, if you feel they are necessary.

Attachment:- Homework.xlsx