Applied Econometrics

1.For a given year (a recent year) find data on average income and average price (in thousands) of houses
sold for fifteen towns (fifteen observations) around metropolitan Boston, Chicago, New York or San
Francisco.Report the data (show as a table) in an appendix and upload it. Response for this question requires
uploading a table.
2.Calculate by applying the formulas, expected value (arithmetic average) of sales in the area, its standard
deviation and upper and lower bounds within 95% of confidence interval. In both cases, show and Interpret
results–do not just report the result.
3.Show, for one of the variables, the probability distribution–density function–(with a graph) after rearranging
the data from lowest to highest and dividing the range into five equal sections. Interpret results.A response for
this question requires uploading a graph.
4.Consider a model with these two variables (cause and effect) and run a regression. Report the estimated
function and interpret the estimated coefficients (please attach the computer printout).