Read the article "The Effects of Remittances on Savings".In this project, you will try to "replicate" the results obtained in the article. You will use the "saving_final" excel file to do the following:
Part I
Provide a Summary Statistic table for all the variables in the File.
Provide a Histogram of your main quantitative variables (Saving, Remittances and Income).
Provide a Scatterplot of Savings against remittances.
Run a simple linear regression of savings as the dependent variable and remittances as the explanatory variable.
Run a multiple linear regression of savings as the dependent variables and remittances and the individual characteristic variables as explanatory variables.
Perform a residual analysis of your multiple regression model in order to check whether the 4 assumptions of Least Squares are met.
Create three new variables as the natural logarithm of Saving, Remittances and Income (i.e. Ln(S), Ln(R), and Ln(I)). Then, repeat steps (2) to (6) using the variables in natural logs.
Part II
In two pages, you will write a report describing your model and you results. Your report should include the following:
A brief summary of what you are trying to do (one paragraph at most).
You should explain the models that you will be estimating in the following way:
Y = b0+ b1X1 +?+ bnXn + ε
Interpret the results of the two multiple regressions in Part I (i.e. meaning and significance of coefficients, meaning of R-square, etc).
Comment on the validity of the models based on the residual analysis.
Notes:
You will provide your report, which should be no more than two pages single spaced.
You will provide all the tables and graphs (Part I) in an appendix. Make sure you label all your graphs and tables.
Attachment:- Effects-of-remittances-on-saving-not-spaced.rar