TEMP Definitions for Annual Consumption of Chicken Data Y p

TEMP Definitions for Annual Consumption of Chicken Data Y = per capita chicken consum ption (in pound) in a given year PC = the price of chicken (in cents per pound) in a given year PB = the price of beef (in cents per pound) in a given year YD U.S. per capita disposable inconne (in hundred of dollars) in a given year 1974 143.8 107.8 134.6 54.98 38.69 42.02 42.71 1457 145.9 178.8 1976 1977 62978 42. 979 4.75 1981 65.17 16 125.4 143.6 53.5 22247224 88.22 13 48.35 48.47 79.67 234.7 97.65 185.6 179.7 4 104.26 56,2 235111.31 123.19 983 SA6 234.1 13 1985 $4.6 19865642 12 13 1984 54.61 Assignment 1 1989 63.8532268130.37 62.1 57.7 170.8 188.8 228.6 136.49 [1] Download the data file CHICK6.csv from Module 1.b 61.94 238.4 35 15 2 Load the CHICK6.csv data into R and rename it so that it includes your own name or initials (for example, 17 we might name our file SofiaCHICK6.csv) 162.57 171.31 176.09 642 250312.42 32 193.5 224.9 224.2 209.5 209.1 209.5 2657 152.g 1990 1991 17 70.34 271284616 26.22934184.94 19 288.3 [3] Generate the mean and the standard deviation for the variables Y,PC,PB, and YD from the CHICK6.csv 20 data set 21 188.72 1995 206.1 [4] You are going to run a regression (in [5]) where Y is the dependent variable, and PC,PB, and YD are 2322 the independent variables. Discuss whether you think the independent variable PB have a negative 24 or positive effect on the dependent variable. In your decision, try to use as much economic theory as you 26 can-theory is what motivates what variables are included in a model and what sign we anticipate for the 27 model\'s estimates. 79.2726.9 284.3 202.87 80.61 233.7 1996 1997 1998 1999 836 2001 210.91 279.5 231.6 332277239. 1 242.7 241.4 258.2 269.4 265.8 26 88.98 90.08 89.71 94.37 39.5 306A 262.2 306.4 337.7 331.5 254.69 [5] Estimate the model in R and present the results. 271.45 [6] Interpret the results for the coefficient PB from your model. Make sure to include whether or not the result aligned with your expectations.

Solution

x-> read.csv(“SofiaCHICK6”)

3. To generate mean write the command

Mean(x$varname)

To generate standard deviation write command

sd(x$varname)

4. The variable PB will be negatively related to dependent variable Y because beef is a substitute to chicken consumption therefore increase in price of beef because people will consume more of chicken.

5. Write the command

Z-> lm(Y~ PC+PB+YD)

summarize(Z)