Purchase Solution

Measuring Correlations of Variables with Money Spent

Not what you're looking for?

Ask Custom Question

Refer to Column 3 of Table 1 on p. 31 of the following journal paper (see reference below). The dependent variable is the amount of money spent on conservation so the table measures the correlations between this variable and a variety of independent variables from the model.

a. Describe the correlation with the independent variable REPTILE. Does it make sense? Why or why not?

b. Describe the correlation with the independent variable ENDANGERMENT. Why is this relationship troubling from a conservation standpoint?

c. Is there any variable in this list that supports the premise that people tend to support the conservation of charismatic megafauna? Why or why not?

Reference: Metrick, A., & Weitzman, M. L. (1998). Conflicts and choices in biodiversity preservation. The Journal of Economic Perspectives, 12(3), 21-34.
Chicago

Purchase this Solution
Solution Summary

The expert helps use data from a journal article to measure correlations of variables with money spent on conservation.

Solution Preview

The regression formula is:

LN(SPEND) = 9.17 + .73*MAMMAL + .39*BIRD - 1.79*REPTILE - .71*AMPHIBIAN + .62*ENDANGERMENT +.86*LN(SIZE) + .06*UNIQUE - .52*SUBSPECIES

a) The REPTILE variable is a dummy variable where if the animal is a reptile then the variable is assigned a value of 1 and a 0 if it isn't a reptile. Thus, this coefficient of -1.79 is indicating that reptiles on average receive considerably fewer funds than any other animal type (mammal, bird, etc.). Further, this coefficient is statistically significant at the 1% level so there is a definite negative ...

Solution provided by:
Robert Reinhart, MBA
Education
  • MBA, Merage School of Business, Univ of Cal, Irvine
  • BA, Univ of Cal, Irvine
Recent Feedback
  • "Thank you so much for your help, it was very helpful to see how you did it in excel. Thanks again!"
  • "Awesome review. Thank you!!!!!"
  • "Wow - Amazing - Thanks"
  • "Thanks"
  • "Thanks for your help. Your solution helps me understand the problem and its solution."
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • 475048 Measuring Correlations of Variables with Money Spent Measuring Correlations of Variables with Money Spent The regression formula is: LN(SPEND) = 9.17 + .73*MAMMAL + .39*BIRD - 1.79*REPTILE - .71*AMPHIBIAN + .62*ENDANGERMENT +.86*LN(SIZE) + .06

  • Correlations and T-Tests: Example Problem

    When we're working with correlations, we're looking for a relationship between two variables.

  • Qualitative Research Critique

    Otherwise said though, the statistical analyses are appropriate for measuring correlations between two changing variables which have their own subset of variables (individual components of the questionnaires).

  • What is correlational research?

    Below are the assessment criteria for measuring degree of association by using r. r score ranges form -1 to +1.

  • Correlation Matrix

    spent in the mall during the visit The following correlation matrix shows the correlations among these variables.

  • Pearson r scores

    580648 Correlations Correlations Hill (1990) studied the correlations between final exam score in an introductory sociology course and several other variables such as number of absences.

  • Correlation and Regression

    This gives us predicted sales of $638,366.43. Note that this result (all of the advertizing money should be spent on newspaper ads) is the same as what we found when doing a simple linear regression analysis.

  • Statistics

    There are several ways common to measuring the volatility (degree of movement or spread) in a sample. Volatility is a common expression. We are familiar with standard deviation and variance of a sample.

  • Real Business Cycle Theory - procyclicality

    The opposite would hold for positive correlations. Procyclical variables have positive correlations. RBCT predicts that money supply and prices should be procyclical variables: they increase during booms and decrease during recessions.

View More Related Solutions