Econ 303

This question uses the Highway_Accidents Excel file that is posted to Oaks (Content – Homework).  When conducting the statistical analysis be sure to use all the observations.  The workbook contains two tabs: 1) Data; and 2) Variables.  Please review the variable tab before beginning the assignment.  The Data worksheet contains 7,313 highway segments from the Atlanta Metro Area.

Problem Statement: In this problem, we want to investigate contributing factors to fatal car accidents on interstate and state highways.  Additionally, we will focus our investigation on the number of thru lanes and the traffic level.  Other control variables include pavement quality and pavement roughness.

Part A: Identify the dependent variable.

Part B: State the null and alternative hypothesis for the number of thru lanes and the traffic level.  Assume a two-tailed test.

Part C: Using the Real Stats Excel package or equivalent software, estimate a linear probability model to answer the problem statement above.[1]  Include all the dependent variables in your analysis.  Provide the results with your solution.

Part D: Complete Table 1 (see below)

Part E: What factors contribute to the cause of fatal accidents? Note you should rely on the regression results instead of solely on Table 1.

Part F: Which characteristic (excluding the intercept) leads to the largest, statistically significant increase in the likelihood of an accident? Justify your answer. Note you should rely on the regression results instead of solely on Table 1.

Part G: Discuss why it is important to include multiple control variables in the statistical analysis.

Tab

[1] Equivalent software includes: The Data Analysis Tool Pack in Excel, MiniTab, SPSS, Stata, or SAS