Quantitative Methods Paper

Question 1 (25% of the marks, 500 words)

The file teachhvarnew.sav contains the results of a survey of visitors to the island of Hvar in Croatia. The respondents were asked the question "what are you willing to pay as a daily tourist eco-charge to improve the environment of the island of Hvar?". This file shows the response to this question and to other questions – see variable description window for more detail.

You are interested in what determines whether the respondents were willing to pay 7 kunas or not (7 kunas = approximately 1 euro).

First, create a new dependent variable (called wtp_7, say) which indicates whether the respondent is willing to pay this amount or not i.e. wtp_7 should have a value of 1 if wtp = 7 and value of 0 if wtp has any other value.

Your task is now to evaluate, via logit analysis, what determines willingness to pay.

Conduct this analysis and comment on your results including the following:

• Comment on the coefficients and on their significance.
• Check for multicollinearity in your data set and comment.
• Some studies have shown that as people age their preferences for the environment change. Initially they are willing to pay more, but then less. Test this using age and age squared as explanatory variables. (Hint: you will need to transform your data).

Question 2 (25% of the marks, 500 words)

The file stockdata.xls contains data on the real rate of return on stocks, output growth and inflation. Extend the series by 10 years with your own data to make an individualised data set (i.e. make up your own numbers).

Theory suggests that that the rate of return is determined by output growth and inflation. Run a regression to test this and comment on your regression.

You believe that in the period 1977 onwards a change occurred in the markets. To test for this use a dummy variable. Comment on the impact on your results.

Question 3 (1,000 words)

(i) (12.5% of the marks)

Columns q3p to q3u in file mres_eic.sav contain the responses to the following 6 statements (where SP = easyInternetCafe). They have been scored 1 = Strongly Disagree through to 5 = Strongly Agree. These six responses were intended to be used by the investigators, amongst other things, as a multi-item scale of ‘customer satisfaction’. Please comment on the internal reliability of this proposed scale. Would you consider it advisable to delete any of the items? Why? (For your convenience, the negatively sensed statements: q, s and t have been re-scored in columns q3qrev etc.)

SD D U A SA

p) If asked, I would recommend SP to friends. [] [] [] [] []

q) I shall look for a better SP in the near future. [] [] [] [] []

r) I have encouraged friends to use SP. [] [] [] [] []

s) In the future, I shall use SP less. [] [] [] [] []

t) I shall tell friends about any complaints I may [] [] [] [] []

have.

u) I shall continue to use SP. [] [] [] [] []

Price: $37.64

Solution: The downloadable solution consists of 16 pages, 2164 words and 19 charts.
Deliverable: Word Document