1 Project One Carpoll

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3 Excel Convert categorical data into dummy variables Type of vehicle: family, sporty, work Sort type Select some of family observations Expand selection in dialog box Code family as one, sporty and work as zero

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7 Vehicle Type Family Yes: One, 155 No: zero, 148 Total: 303

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11 Sort Gender and Code zero/one Male: one; Female: zero Select some observations in sex, expand selection, sort Ditto for marital status Married: one Single: zero

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15 Cross-Classification of Type with Gender FamilySporty & Work Total Female Male Total

16 #-Way classification in one step

17 Family: Yes MarriedSingleTotal Female Male Total

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19 Cut and Paste Fambern, age, gender, marital into EViews File Menu New workfile

20 Workfile Dialog Box

21 Generate x = 1

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25 Estimate Linear Probability Model

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27 Age and marital are significant, And have a positive effect on The probability of choosing a Family car. Gender barely adds to the explanation and is negative Given age and gender, being married increases the Probability of favoring a family car by 0.23

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29 Married and Female Single and Male

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31 Married and Female Single and Male

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35 This probability model does a better job of explaining those Who favor a family car compared To those who don’t

36 Logit Fit

37 Married women Single men

38 Linear Probability Model Car Size Car size: Small, medium, large Varies with age, gender, and marital status

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41 Sort by Size and then by Age

42 Contingency Table Analysis: Observed SmallMediumLargeMargin Margin

43 Contingency Table Analysis: SmallMediumLargeMargin Margin

44 Contingency Table Analysis: Expected SmallMediumLargeMargin Margin

45 Contingency Table Analysis: [Observed – Expected] 2 SmallMediumLarge    

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%  2 =75.09

48 Contingency Table Analysis: SmallMediumLarge Fewer than exp 30-39Fewer than exp 40- More than exp Margin

49 Summary People in their 20’s prefer smaller cars People in their forties or older prefer large cars

50 Country Vs. Size Country: American, European, Japanese Size: small, medium, large

51 Contingency Table Analysis: Observed SmallMediumLargeMargin American European Japanese Margin

52 Contingency Table Analysis: SmallMediumLargeMargin American 137 European 124 Japanese 42 Margin

53 Contingency Table Analysis: Expected SmallMediumLargeMargin American European Japanese Margin

54 Contingency Table Analysis: [Observed – Expected] 2 SmallMediumLarge American European Japanese    

55 Contingency Table Analysis: SmallMediumLarge American fewer than exp more European Japanese more fewer Margin

56 Summary Preference for large American cars and for small Japanese cars.