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Econometric Country Project

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I am having trouble with an extra credit project and it is important I do well. I am trying to create a project to predict if, after comparing the "Axis of Evil" (North Korea, Iran and Iraq) with the United States, to see what the differences are (year 2000 data). Then compare the United States with Israel and the UK--its closest allies. Once we see those correlations, compare them to China and Libya to predict if the USA will go to war with them (holding all data constant). I have flexibility with this topic. I have enclosed an Excel Spreadsheet (data) and two Word sheets (one is a table with dummy variables I have set up for questions using the data--my Excel wasn't working properly. The other is a basic cover sheet with my objective).

See the attached file.

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The solution discusses questions regarding the econometric country project.

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Given the data you have I think comparing means across groups is a good way to test for differences and ...

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