ECON3350: Applied Econometrics for Macroeconomics and Finance Tutorial 1
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ECON3350: Applied Econometrics for Macroeconomics and Finance
Tutorial 1: R and Basic Operations
At the end of this tutorial you should be able to:
❼ use R to read, manipulate and save data and workfiles;
❼ use R to compute descriptive statistics;
❼ use R to conduct hypothesis tests concerning a population mean.
Problems
1. The text file consumption .txt contains observations on the weekly family consumption expenditure (CONS) and income (INC) for a sample of 10 families.
(a) Read the data into R.
(b) Draw a scatter diagram of CONS against INC.
(c) On checking the data, you find that your assistant has recorded the weekly con- sumption expenditure for Family 8 as $900 instead of $90. Correct this error and redraw the scatter diagram.
(d) Compute the mean, median, maximum and minimum values of INC and CONS.
(e) Compute the correlation coefficient between CONS and INC. Comment on the re- sult.
(f) Create the following new variables:
DCONS = 0.5CONS,
LCONS = log(CONS),
INC2 = INC2
SQRTINC = ^INC.
(g) Delete the variables DCONS and SQRTINC.
(h) Delete everything.
2. At the Famous Fulton Fish Market in New York city, sales of whiting (a type of fish) vary from day to day. Over a period of several months, daily quantities sold (in pounds) were observed. These data are in the file fultonfish .dat. Description of the data is in the file fultonfish .def. Describe the first four columns.
(a) Use R to open the data file and name the series in the first four columns as date, lprice, quan and lquan.
(b) Compute the sample mean and standard deviation of the quantity sold (quan).
(c) Test the null hypothesis that the mean quantity sold is equal to 7,200 pounds a day at the 5% level of significance.
(d) Construct the 95% confidence interval for part (c).
(e) Plot lprice against lquan and label the variable lprice as “log(Price) of whiting per pound” and lquan as “log(Quantity)” . Then, comment on the nature of the
relationship between these two variables.
(f) Save this workfile to any folder on any drive.
2023-05-28
R and Basic Operations