Question

data

year	state	realbeertax	mwdef	pc_perinc	pop1620	ur1620_r	ANYBAC26	NOBAC26	NOBAC1620	ANYBAC1620
1998	1	0.639528	6.21428	22025	330397	13.46843	260.8	402.2	117.2	42.8
1999	1	0.630308	6.124692	22722	329695	14.9065	258.6	420.4	119.9	41.1
2000	1	0.617784	6.002995	23767	327992	16.51312	255.5	359.5	114.4	38.6
2001	1	0.603291	5.862171	24740	321840	17.4932	222	389	113.1	36.9
2002	1	0.592925	5.761446	25461	315225	16.43963	231.4	402.6	98.7	40.3

Use R Studio. (you just need to write R code)

year = year state = A code identifying the relevant U.S. state realbeertax = the state tax per gallon of beer sold pc_perinc = personal income per person pop1620 = population ages 16-20 ur1620_r = unemployment rate among people age 16-20 (in percent) ANYBAC26 = number of fatal accidents involving alcohol among people age 26 and up ANYBAC1620 = number of fatal accidents involving alcohol among people age 16-20 NOBAC26 = number of fatal accidents not involving alcohol among people age 26 and up NOBAC1620 = number of fatal accidents not involving alcohol among people age 16-20 mwdef = minimum wage (in 2006 dollars)

1, Create a new variable that is equal to the log of personal income per person (pc_perinc).

2,Note that this dataset includes observations from all states and from all years between 1998 and 2002. For simplicity, let’s focus on one year: 2001. Create a new object consisting of the data only for 2001

3,We now have a cross-sectional dataset that includes several quantitative variables. One question we might ask is, what is the relationship between (the log of) personal income per capita and a state’s minimum wage? Create a graph that would let you evaluate this relationship visually

4, Use R to calculate the correlation between the two variables you plotted in question 5.

Answer 1