Linear Regression in Excel
Please read the supplemental article “Cigarette Taxes and Cigarette Smuggling by State, 2014”.
In your first post, please manually enter the related data in Figure 1 and 2 (Tips, only need to enter two variables) and duplicate Figure 1 in excel.
please discuss how to interpret the results obtained from this result. Some suggested areas include but not limit to:
1. The economic meaning of slope
2. Coefficient of determination
3. Testing for significance (what does it mean and how to perform?)
4. How to use the model for prediction.
Please comment on what other variables could also affect cigarette smuggling, therefore be part of this study.
In your second post, find a similar case, like cigarette smuggling, and comment on how to identify a single or several factors which might have a great influence on the behavior. Describe how you will design a study to investigate such a case.