file “hw2_FIN4220.csv” is used for Q2. Note that in the data: 1. there are some missing values and you’d better to remove them 2. the meaning of variables are: V1: GDP per capital_PPP V2: Time required to start a business (days) V3: Time required to start a business (days)_male V4: Time required to start a business (days)_female You probably just need to use V1 and V2.

This assignment focuses on Topic 3 Q1 Run our RStudio file “ch07-hotels-simple-reg_update.R” and attach output figures (note that you need to set your own setwd paths and install necessary packages). This exercise simply replicates our work during class. Q2 Analyze the pattern of association between how easy it is to do business in a country and how much income the country generates. Download the data from the World Bank on GDP per capita in PPP(y) and the time required to start a business (x) for a recent year. Estimate a non-parametric (e.g. bin scatter) and parametric (e.g. linear regression) regression, and visualize the results. You can exactly follow our steps in the hotel case.

 

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