I strongly suggest that you read over this entire guide before attempting to begin your first assignment.
In order to do the required work, you must have the following basic computing skills:
You will find it convenient to use several programs at once. As with Windows 3.1, 95, and NT, you must click on the program icon to start each program.
Once you start a program, it will not always be obvious that the program is actually running. Some of the programs do not have windows. Specifically, SimpleText and DropText, can both run without a window. To restart these programs, you will need to know how to use the Mac program menu system. The Menu Bar is the small gray band at the very top of the screen. In the top right hand corner on the Menu Bar, there is a small icon that is associated with the program window that is currently open. If you hold the mouse button down on this icon, a list will appear showing you all the programs currently running. To switch into the program of your choice, you simply highlight the appropriate name. How do you know that the program has started to run, or is now active? You can tell by looking at the icon in the right corner of the Menu Bar, or by looking at the menu options. They will change as the active program changes.
``Get the real estate sales data from the 333-Main Page and test for the difference in variance of asking and selling prices using Excel. Hand in your Excel output''.Note that this is the Excel assignment for week #3. It is due in your tutorial in week #4.Here are the steps you will have to go through to complete this assignment.
Obtain the data from the Web Page and save it to disk.
Open Excel and import the data from your disk into an Excel Workbook. Perform the Test: There are two ways to do this. Either use the output from Data Analysis: Descriptive Statistics tool, or else use the Two-Sample F-Test of Variances tool. Interpret your output. This is the most important step in the whole process. Excel is just a glorified calculator. In order to get full marks on the assignments and on the final project, you must demonstrate that you understand the Excel output you have generated.
1 How to Obtain the data from the Web Page and Save it to Disk.
Follow these steps:Go to the web page (Main Page) that contains the Real Estate Sales data (you will have to scoll down the page), or you can follow this link to real_estate_sales.data. The data should fill the screen of your Web Browser with seven columns of numbers. To download this data file to your disk, simply click on the file menu and select ``save frame''. An option box will then appear on the screen. If you are using an IBM, select the A Drive. If you are using a Mac, select your disk from the desk-top and save the file. If you are using a Mac, MAKE SURE THAT THERE ARE NO SPACES IN THE FILE NAME.
The default file name will work. The Default file name is: real_estate_sales.data for Macs
real_est.dat for IBMs.
After you have saved the files, you will also want to save the header file. real_estate_sales_data.header.
Again, you can go through the main page, or you can get the information by following this link to real_estate_sales_data.header
What is a header file?
This is actually an important question. Many students have wasted a great deal of their time and ended up very frustrated because they don't understand exactly what a header file is.
A header file contains a description of each column of numbers in the data set. Without the header, it is often difficult to work out which column is associated with which variable. For instance, in the real_estate_sales.data file, does the first column of numbers represent the asking prices, or does it represent selling prices? What does the third column of numbers represent?
The header file is only for your own benefit. When you do your project, you will obtain data from the CANSIM database. In order to work out what the numbers you have obtained actually represent, you will have to look to the associated header file.
If you ever have trouble importing your data into Excel, your problems will have nothing do with the header file. Header files are for Human consumption only. Excel will never be aware of your header files.
For Computing Assignment #4, you will not have to create a Header file because you will be inputing the data yourself. Because you input the data you will know what each column of numbers represent. You can even label them accordingly in Excel.
A ``Workbook'' is the name given to the type of file that Excel uses to save your work. If you are unfamiliar with Excel, you should read chapters 1 and 2 of Data Analysis Using Excel 5.0, by Middleton before going any further.Remember that you saved the Real Estate Sales data onto your disk. If you are on a Mac, you probably called it real_estate_sales.data . If you are using and IBM machine, you probably called it real_est.dat .
Follow these steps to bring the information into Excel:
There is only one problem: You don't know what each of those columns represents.Open up Excel. Go to the File menu and select Open. Choose the directory that contains your disk. On the IBMs, this means select A drive. On the Macs, this means you have to first select the desk-top, and then click on your disk name. You now have to find the file containing the Real Estate Sales data. At the bottom of the Open dialog box, there is a box which allows you to select the file type. Choose All Files. Your file, be it real_estate_sales.data or real_est.dat should now appear in the list of files. Double click on the file name, and then press OK. Because the Real Estate Sales Data is not in Excel format, Excel will automatically present you with the Text Import Wizard.
There is a section near the top of the Wizard box labeled Original Data Type.
It tells you to Choose the file type that best describes your data.
Select Delimited.
Press Next.In Step 2 of the Text Import Wizard, there is a box called Delimiters.
Click the dots beside Tab and Space.
Press Finish. You don't need to go to Step 3 as you would only select the default settings anyway.The Real Estate Data should now appear in Excel in nice neat columns. To make you life easier, it is a good idea to include headings for each of the cloumns.
Go through the following steps:
After you have completed importing your data, you should transform the data format into Excel. This will allow you to see graphs, etc.. Go into the file menu and select " Save as...". You don't have to change the name of your file, all you have to do is, select under "Save file as type ..." the choice "MS Excel Workbook".Open up the header file. You can do this in Excel, or using a text editor program like Word, Word Perfect, Notepad, Simple Text, etc. Write down on a piece of paper what the first column represents, the second column, etc. Go back into Excel, and open up the file that contains the data you have just imported. Click on the A1 cell. Go to the Insert Menu, then select Rows. You should now have a blank row above all of your data. In this blank row, insert the labels for the data For example, Ask, Sell, etc
There are two ways to test for differences in the variance of asking and selling prices.The first method takes a little more effort, but is far more instructive.
The second method is a little faster, but doesn't teach you as much about the mechanics of the test.Read section 4.1 (pages 35-40) of Middleton's Data Analysis Using Excel 5.0. This section tells you how to use the Analysis Tool: Descriptive Statistics tool.. Use the Descriptive Statistics tool to get the information you need to calculate the F-test described in Section 9.8 of Newbold's Statistics for Business and Economics. You will have to use the Descriptive Statistics tool twice. Once on the column of asking prices and once on the column of selling prices. Finally, you have to use the Excel output to manually calculate the F-statistic, and then look up the appropriate critical value in the table at the back of your text. Read section 13.4 (pages 163-165) of Middleton's Data Analysis Using Excel 5.0. This section tells you how to use the F-test Two Sample for Variances tool. Once you have run the test you just have to interpret your output.
You must Interpret all of your Excel output. Handing in Excel output with output and Interpretation only indicates that you can follow these instructions or photo-copy. It does not indicate that you have learnt any of the econometrics.You must always explain what the output means.
What does it mean to Interpret your output?
In this case, it is really easy and only involves a couple of lines. Your TA certainly won't mind if you just write your interpretation at the bottom of the print out of your Excel workbook.
Follow these steps:
State the null hypothesis. In this case, it is: Ho: The variance of selling prices is the same as the variance of the asking prices Write out the formula from page 366, which shows how the F-stat was calculated. Write down the value of that F-test statistic based on the Excel output and your calculations. Look up a critical F-value in an F-distribution table and note it in your explanation. Compare the critical value to the observed F-test and state whether or not the test was accepted or rejected.
``Again using real estate sales data from the 333-Main Page, estimate a least squares regression of selling on asking prices using EXCEL. Hand in your EXCEL output.''.Note that this is the Excel assignment for week #4. It is due in your tutorial in week #5.Here are the steps you will have to go through to complete this assignment.
Obtain the data from the Web Page and save it to disk. (See assignment from week #3) Open Excel and import the data from your disk into an Excel Workbook. ( See assignment from week #3 ) Run the regression by following instructions in Chapter 14 of Middleton's Data Analysis Using Excel 5.0 Interpret your output. This is the most important step in the whole process. Excel is just a glorified calculator. In order to get full marks on the assignments and on the final project, you must demonstrate that you understand the Excel output you have generated.
``Using your project data, answer questions ch.12#16,19,22. ''Note that this is the Excel assignment for week #5. It is due in your tutorial in week #6.This assignment is similar to that from week #4. This week I want you to use your project data (which you can download from the project page ) to perform a least squares regression on an explanatory variable of your own choice (you can use one of the explanatory variables I have on the project page or download a variable from CANSIM). I want you to answer questions ch.12#16,19,22 for your regression. Hand in your computer output!
``Using your project data specify a model for your variable (pick at least 3 explanatory variables) and estimate the multiple regression model. Hand in your computer output with a one page description of your model'' (like the data definition section of your project - See the outline for the project for further details.Note that this is the Excel assignment for week #7. It is due in your tutorial in week #8.Here are the steps you will have to go through to complete this assignment.
Obtain the data and save it to disk.
(See assignment from week #3)Open Excel and import the data from your disk into an Excel Workbook. ( See assignment from week #3) Run the regression by following instructions in Chapter 16 of Middleton's Data Analysis Using Excel 5.0. Interpret your output. Remember, this is the most important step in the whole process. You must demonstrate that you understand the Excel output you have generated.
``Using your project data and model, perform t-tests and F-tests and summarize and analyze the results. Hand in your output and your report (1-2 pages).''Note that this is the Excel assignment for week #8. It is due in your tutorial in week #9.There is not much new here in terms of computer work.Run the regression by following instructions in Chapter 16 of Middleton's Data Analysis Using Excel 5.0 and conduct the tests Summarize and interpret your test statistics output. In order to get full marks on the assignments and on the final project, you must demonstrate that you understand the Excel output you have generated.
You will need to test the significance of the parameter estimates. This means that you should be testing the following hypotheses:
H0: Bx1 = 0
and
H0: Bx2 = 0
and so on, for all your variables, as well as testing
H0: Bx1 = Bx2 = ... = Bxk = 0
All the information you need to perform these tests is included in the output given to you when you use the regression tool.
``The stock market crash in Oct. 1987 was a dramatic event. Using your project data and model, add a dummy variable to test for a shift at that time on to now. Hand in your computer output together with your report (1 page).''.Note that this is the Excel assignment for week #9. It is due in your tutorial in week #10.For this question, you will need to create a new variable - the dummy variable.
Open up the Excel workbook that you have your project data in, and enter a new column. This column should have 0's in it up and including September 1987, and 1's from October 1987 on. Run the regression using your model from week #8's assignment with the new variable (the dummy variable) added to it, by following instructions in Chapter 16 of Middleton's Data Analysis Using Excel 5.0 Interpret your output.