Econometrics StudyFind if there is any coelation between the percentage of poverty and the...

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Econometrics StudyFind if there is any coelation between the percentage of poverty and the percentages of the different levels of education for the counties. Does lower percentage of HS grad or above mean higher percent of poverty in the county?If the percentage of bachelors or above graduates coespond to a lower percent of poverty?Construct and estimate an Eor Coection model based on HS graduates and poverty levels. Construct a coelogram. Is there evidence of heteroskedasticity?

Pooja · Accepted Answer

Econometrics Study
> data  View(data)
> 
> library(reshape)
> data  data  data  data  #1#
> 
> library("PerformanceAnalytics")
> my_data  chart.Correlation(my_data, histogram=TRUE, pch=19)
There is moderate negative linear relationship between (poverty, HD grad with r=-0.38) and (poverty, bachelors with r=-0.32). There is a no significant linear relationship between (poverty and grad with r=-0.07).
2. Does lower percentage of HS grad or above mean higher percent of poverty in the county?
With r=-0.38 between HS grad and Poverty, I can say that there is a moderate negative linear relationship. That is as the value of HS grad increases, the value of Poverty decreases. 
3. If the percentage of bachelors or above graduates correspond to a lower percent of poverty?
With r=-0.32 between bachelors and Poverty, I can say that there is a moderate negative linear relationship. That is as the value of bachelors increases, the value of Poverty decreases. Hence, I can say that higher percentage of bachelors or above graduates correspond to a lower percent of poverty. 
4. Construct and estimate an Error Correction model based on HS graduates and poverty levels. Construct a correlogram. Is there evidence of heteroskedasticity?
Error Correction model as obtained from the column of coefficient  poverty = 46.57 + -0.

Econometrics Study Find if there is any correlation between the percentage of poverty and the percentages of the different levels of education for the counties. Does lower percentage of HS grad or...

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