This project is an individual project (in rare cases, you may team up with another
student, but you should get my permission first). You must provide a typed Word
document with necessary Excel worksheets:
1. A cover page with the title of your project, your name, student ID #, instructor’s name,
name of the course, course section number, semester of course, and your major(s)—if
you have multiple majors list them all and place an asterisk (*) by what you consider to
be your primary major. (1 points)
2. Start with an Introduction section, which should be about 300-500 words. Introduce
your research question and explain the importance of analyzing it. (1 points)
3. Data section: You should collect at least 60 observations per column in at least four
columns from primary, reliable and published sources or their own data. (1 points)
• One column is your dependent variable, Y value, the other three columns are
independent variables and one of which should be a dummy variable.
• You can use more than one dependent variable and more than one dummy variable
if you wish.
• Explain the purpose of selecting those explanatory (X) variables to analyze your
dependent (Y) variable. Explain what you expect from each explanatory (X)
variables carefully. Should they increase or decrease your dependent (Y) variable?
• Examples of published sources are the data from the textbook, your own employer,
US Bureau of Labor Statistics, US Bureau of the Census, Moody’s Handbook of
Common Stocks, New York Stock Exchange, National Bureau of Economic
Research, Wall Street Journal, Federal Reserve Bank, or internet sources such as
finance.yahoo.com, nyse.com etc. Observations should be typed in the columns.
• Print out your data.
4. Descriptive statistics: Detailed information on data used. Run the descriptive statistics
in Excel to find the descriptive measures of your variables. Copy and paste the
descriptive statistics into the word document. Discuss the averages, minimums and
maximums, and any interesting observation you can make regarding the descriptive
statistics. (1 points)
5. Regression analysis: Run a regression of your dependent variable on your
independent variables. (4 points)
• Insert a graph of your dependent (y) variable against your explanatory (x)
variables individually. What type of a relationship are the graphs suggesting?
Explain each graph/chart with a sentence. (1 points)
• Write the functional form of your multi-variate regression model. (0.5 points)
• Discuss the strength and the significance of your regression mode by using R-
square and significance- F where α = 0.05. (0.5 points)
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• Print out the output. Interpret the intercept. If the intercept does not have any
meaningful explanation, state why it does not have a meaningful explanation. (0.5
points)
• For each coefficient, write the null and alternative hypothesis to test whether that
independent variable has a significant effect (at 5% level) on the dependent
variable. Interpret all coefficients. (1 points)
• Use the coefficient estimates to write the prediction equation (yˆ), and make a
reliable prediction based on this prediction equation. (0.5 points)
6. Create two groups based on the dummy variable and decide whether there is a
significant difference in the mean levels of your dependent variable for these two groups.
• Run the t test to test whether there is significant difference in the mean levels of
your dependent variable of the groups that you created based on your dummy
variable. (1 points)
7. Finish with a Conclusion section, which should be about 250-300 words. Tie this section
to the Introduction. Remind your research question to the reader and summarize what you
have found. Explain your findings briefly and make clear and practical recommendations
based on your findings. Make sure that you discuss the implications of your results and
possible reasons for why they occurred in a simple, clear, and concise manner. (1 point
