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Shelby

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Submitted By mcmuuurp77
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Modeling Project: Average Income in each State

Shelby McMurphy
Stats for Business and Economics 211
Rosemary Walker
April 24, 2014

Table of Contents

I. Introduction…………………………………………………………………………...3 II. Model…………………………………………………………………………………….4 III. Data……………………………………………………………………………………….5 IV. Results……………………………………………………………………………………6 V. Conclusion……………………………………………………………………………..8 VI. References……………………………………………………………………………...8 VII. Appendices………………………………………………………………………………9 a. Computer Printouts b. Project Answers

I. Introduction
Ever thought about moving to a totally different state? Well there are always factors that you want to consider and brainstorm about before you make that big decision. One of those big factors that people like to investigate is the average income of people in that state. Many factors can explain the average income in the different states, such as the median value of a house in that state, the percentage of different races, percentage of women rather than men, and percentage of people with a college education at least. In this modeling project, we will investigate into how these factors can play a part in the average income of the states.

II. Model
The population regression equation for this model is as follows: y= β0 + β1x1 + β2x2 + β3x3 + β4x4 + β5x5
The dependent variable is the average income in each state. The independent variables are percentage of women, percentage with a college degree or higher, median value of house, percentage of Mexicans, and percentage of Asians.

The percentage of women is expected to be a negative sign; mainly because it is seen as most women being the ones who stay home and take care of their children while their men work. Therefore as the percentage of women increases in a state, it is expected that the average income would be less. It is

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