(b) In April 2020, many people across the world died from COVID- 19. To examine the...

 

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(b) In April 2020, many people across the world died from COVID- 19. To examine the factors affecting the number of deaths, data were collected on the following variables for 100 countries. DEATH: Total number of deaths due to COVID-19 in each country in April 2020 TEMP: Average temperature (in Celsius) in April 2020 POPSC: The number of senior citizens, aged over 65 SH: A dummy variable that takes a value of 1 if a country is located in the southern hemisphere or 0 otherwise. The estimated model is given below. Standard errors are in parentheses. log(DEATH;) = 8.022 – 0.029 log(TEMP;) + 0.0000043POPSC; – 0.198SH; - (3.62) (0.088) (0.000002) (0.321) n = 100 (i) R² = 0.589 Test whether log (TEMP) can significantly explain log (DEATH) at the 1% level of significance. Test whether the variable SH has a negative effect, that is, the countries located in southern hemisphere have significantly lower death relative to other countries. Use 5% level of significance. (iii) What happens to number of deaths if the number of senior citizens in a country increases by 20,000, holding other variables fixed? (ii) (b) In April 2020, many people across the world died from COVID- 19. To examine the factors affecting the number of deaths, data were collected on the following variables for 100 countries. DEATH: Total number of deaths due to COVID-19 in each country in April 2020 TEMP: Average temperature (in Celsius) in April 2020 POPSC: The number of senior citizens, aged over 65 SH: A dummy variable that takes a value of 1 if a country is located in the southern hemisphere or 0 otherwise. The estimated model is given below. Standard errors are in parentheses. log(DEATH;) = 8.022 – 0.029 log(TEMP;) + 0.0000043POPSC; – 0.198SH; - (3.62) (0.088) (0.000002) (0.321) n = 100 (i) R² = 0.589 Test whether log (TEMP) can significantly explain log (DEATH) at the 1% level of significance. Test whether the variable SH has a negative effect, that is, the countries located in southern hemisphere have significantly lower death relative to other countries. Use 5% level of significance. (iii) What happens to number of deaths if the number of senior citizens in a country increases by 20,000, holding other variables fixed? (ii)

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i To test whether logTEMP can significantly explain logDEATH at the 1 level of significance we can use the ttest The null hypothesis is that the coeff... View the full answer