Lecture six with keep plowing

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Lecture six with keep plowing through regression tricks that we were used to analyze

women’s labor force participation historically video test for at least two weeks in

primarily in Excel so let me think about that so keep your Excel skills sharp keep doing

my homework’s and practicing different versions let’s try okay this is Disney column may

we have parks tab 100 movies that 200 TV have 400 RI I’m going to select a mentor so

we have the Disney company it makes profits from his amusement parks is movies and

from its TV and they are 100 200 400 and a bar graph because it’s a very common way

to express the data so this is a five-minute application of Excel to a random topic so I

miss I’m going to select those three rows two columns go to insert now it has

recommended charts click on recommended charts you can do a pie chart a clustered

column is called this is just presenting the data how should we present this data graph

and the trip was click on recommended charts you select the data select the data and

then click on recommended charts and you can choose how you want to do it it enables

you to do the bars horizontally or vertical so I went to do the horizontal ones so there

you TV movies and parts and you can play around with your titles member you click that

+ that enables you to label the x-axis the y-axis whatever this is a very this is the most

common way to present data like this is is whatever this is called called a bar chart I

guess so enough of that but the recommended charts is a nice to nice command to

enable you to choose how you want to do it okay let’s go back to what we’ve been doing

some ago control a delete K here’s what were doing were addressing the issue of using

regression which gives us a linear approximation of the relationship when the data is not

linear what you do so if you’d fire why we model cost always assume is for that linear is

a reasonable approximation that means if you if you got some scatter toys you want to

try and describe the relationship the lie is in a straight line best fits the data is that is

then that indicate a relationship between the two variables a streamlined means a linear

relationship now is in intro today the relationship between temperature and CO2

temperature CO2 so let’s put temperature here in CO2 down here and with very small

concentrations of CO2 in the atmosphere is more of more CO2 higher temperature but

then it flattens out and so once you this way more CO2 does not raise temperature very

much so this is a relationship and by way were were this point words increasing or

decreasing CO2 will hardly any temperature because were not in this range were in this

range so why are we spending all this money to do a good question I don’t know the

answer to that other than it’s always China not on board okay so what we do okay what

were looking at we need a nonlinear so let me just make up some in Excel so column

and he will put age the spread earnings put earnings in column a notice but age age

and then column B will be earnings and so so let’s go from lower ages to hire so ago

2028 3648 6070 A.D. and there are some ages will have earnings start off low 20,020

5030 3547 4010 now I’m in a multiply earnings I went up earnings in thousands

sightless earnings times thousand so I’ll call column C earnings to and I went to take

column being multiplied by thousands of the way you do that in situ you go equal be to

the right be to click on it equal be to times*of thousand okay in column C to I write the

will be 2×1000 hit enter that I got it click back in it I clicked back on C2 and the little

black.I can drag down to finish the calculations so I just multiplied column B by

thousand now let’s see I want earnings to an age Simon a move age would move age

but a copy age and movement next to earnings to because I’m interested in earnings to

an age now I’m going to select I’m just draw graph on the to select earnings to an age

that go to insert recommended charts I go to the insert tab and then recommended

charts that here’s a scatter diagram but it’s got earnings on the horizontal age on the

vertical so I’m going to start over I’m going to take earnings amended take earnings to

copy that control see pasted into column E so now earnings to his next age diamond to

select this data these days age and earnings to go to inserts I’m on insert go to

recommended charts what’s going on there what’s up with this now age 80 earnings is

80,000 oh the didn’t do the transformation by earnings to is wrong so pardon yeah well

for so I went to special paste I will is I don’t work okay hold on Ernie students I get rid of

that right delete well I think okay see pasted in wrong I think I got to do special paste

causes it because I trends okay here’s what’s going on earnings to is a transformed

variable I’ve multiplied earnings earnings by 10,000 or 1000 to create earnings to this

means when you copy and paste it is like you have to do special paste for to preserve

the multiplication that we may think this is why Excel is a pain but so and that is do it

again to take earnings to now this okay I can go like that okay on now I’m gonna try to

pasted paste options doesn’t like special Kitty all I dated by choosing values so let’s

review let’s do that again whatever okay we’ve multiple okay we’ve transformed variable

there’s many easy ways easier ways we could do this by were obtained were compute a

squared for example so take age and multiply by itself and get a squared transformed

variable changes to change age to age squared if we move around a squared we have

to do paste special values you can’t just you can’t just pasted into a column if is a

transformed variable you gotta do paste special so let’s do it again summer try to do

here, my right click pay special so you you gotta do values you want to stick the values

in their and I think that’s all you gotta do our age and earnings to select those