Question

Hi I need some ideas for creating four different regression models. My dependent variable is GDP and my independent variables are state (which includes all 50 states including D.C.), year (which includes the years 2016-2018), agedpop (if the population is 65 or older). WestCoast (=1 if the state is on the west coast and 0 if not). EastCoast (=1 if the state is on the east coast and 0 if not), and Midwest (=1 if the state is in the midwest and 0 if not). Thank you in advance for your help!

Answer 1

There are multiple ways to create four different regression models. In all those regression models we have GDP as the dependent variable.

1. The first model is developed using GDP as the dependent variable and State, Year, Aged pop, West Coast, East Coast and Midwest as independent variables.

2. Now suppose we are only focusing on the West Coast population. So, we can remove the East Coast and Midwest from the set of independent variables keeping the other variables and West coast indicator. That will be one regression model.

3. Again suppose we are interested in East coast population. So, we can remove the West Coast and Midwest independent variables keeping the other independent variables along with East Coast indicator. It will yield one regression model.

4. Similarly if we want to focus on the Midwest we can remove the East Coast and West Coast independent variables from the set of independent variables and redevelop the regression model.

5. Again we can develop a regression model with the set of independent variables which came out to be significant from the 1st model removing the insignificant independent variables.