Your manager requests that you use the CDC data on diabetes and smoking, obesity rate, physical activity, and poverty rate to present a compelling argument to the board regarding the importance of creating state initiatives to reduce diabetes rates.
May 20, 2020
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May 20, 2020
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Calculate the correlation coefficient between each of the independent variables and the variable—diabetes. What does this value tell us about the relationship between each of the independent variables and diabetes?

  1. Calculate the correlation coefficient between each of the independent variables and the variable—diabetes. What does this value tell us about the relationship between each of the independent variables and diabetes?
  2. Run a regression using diabetes as the dependent variable and smoking as the independent variable.
    • Is there a statistically significant relationship between poverty rates and diabetes? (Use the T-stat or P-value.) Explain.
    • Write out the regression line calculated using the data.
    • Interpret b1 (the slope coefficient).
    • Suppose a state raises the tobacco tax and the rate of smoking in the state falls from 21% to 18%. What would the decrease be in the rate of diabetes based on the regression results?

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