Write a short summary of the article, in which you highlight the following

Reading Assignment #3

Read the article “The Effects of Remittances on Savings” provided on Aula Virtual and do the following:

1. Write a short summary of the article, in which you highlight the following: what is the main hypothesis of the author? What issues, with respect to the data and statistical methodology, does the author encounters? What is his conclusion? (5 points)

1. Then, use the excel file named saving on Aula Virtual and do the following: provide a summary statistic table for the variables Remittances and USSaving. Provide a scatterplot of Remittances against Savings. Based on the scatterplot, can you find any type of relation between the two variables? (Explain). What kind of problem do you observe in the relation between the two variables, based on the scatterplot? (Explain). Calculate the correlation between remittances and savings for the whole sample. Then, calculate the correlation between the two variables, but this time use only the positive values of savings. Based on the correlations that you calculated, what can you tell about the relation between the two variables? Overall, are your results in line with the results provided in the article (Explain). (15 points)

Notes:

1. This assignment is Due IN CLASS, on Thursday, November 5^th. You will provide ONLY a hard copy of it. No assignment will be received via email or after the deadline.

2. Your document should be NO LONGER than two pages doubled spaced. Also, you must provide ONLY one sheet of paper, printed side by side. NO ASSIGNMENT WILL BE RECEIVED IN A DIFFERENT FORMAT.

3. This assignment must be completed individually. Failure to do so will result in a grade of 0 for the assignment, as stated in the syllabus.