Name Id Number Tutor Tutorial Day Essay
Bi Mu Fan 709446 Charles Shenton Friday 3:14-4:15 Spot 3011
Question 1 BEERSHARE EDUC HSIZEAVG SQRDHHSIZE WRKCH5
BEERSHARE 1.000000 -0.190567 0.226910 0.274304 0.389749
EDUC -0.190567 1.000000 -0.131605 -0.117346 -0.058629
HSIZEAVG 0.226910 -0.131605 1.000000 0.993436 0.620427
SQRDHHSIZE 0.274304 -0.117346 0.993436 1.000000 0.658682
WRKCH5 0.389749 -0.058629 0.620427 0.658682 1.000000
To explain how the sales share of beer changes the five regressors: percentage of university graduates (EDUC), average household size (HSIZEAVG), squared average household (SQRDHHSIZE), and percentage of working women with children under five (WRKCH5) are chosen. The fitness of SQRDHHSIZE will be further illustrated in question 2.
i. How the variables change with the new viable:
It is reasonable to assume the bigger the household size the more consumption on beer, however, since there will be a peak consumption for a family at a certain size, a new variable of squared household size is created to seek any new variation. The variable WRKCH5 is picked because due to the living and working pressure, working women with children under five may consume more beers. The education is chosen as a regressor because an X variable that is not sufficiently related with other variables is needed to create an effective regression.
The scatter plot and chart above indicates that WRKCH5 has moderate positive relationships with…