From the Data and Story Library at Carneige Mellon University's "Statlib." Abstract: Economic ability is seen as a major determinant of varying public expenditures per capita among states in 1960. Two factors modify the simple relationship of expenditures to economic ability, however. First is the fact that Nevada has an undue influence on the overall regression. Second is the fact that expenditures per capita in Western states exceed those of Eastern states with comparable economic ability. The first can be seen by identifying Nevada in the scatter dia gram below, and the second by running and interpreting the two-predictor regression of expenditures on economic ability and the dummy variable for West- ern states. Students will benefit from running the regressions with Nevada excluded. Also, it is instructive to create a dummy variable for Nevada (1 if Nevada, 0 otherwise), and running the regression analysis with and without the indicator variable for Western states. Pay particular attention to the resulting coefficient(s) for economic ability, which is the principle factor under study. References: U.S. Department of Commerce, Bureau of the Census, Government Finances in 1960, Census of Population, 1960, Census of Manufactures, 1958, Statistical Abstract of the United States, 1961. U.S. Department of Agriculture, Agricultural Statistics, 1961. U.S. Department of the Interior, Minerals Yearbook, 1960. Authorization: free use Description: Per capita state and local public expenditures and associated state demographic and economic characteristics, 1960. Number of cases: 48 Variable Names: 1.EX: Per capita state and local public expenditures ($) 2.ECAB: Economic ability index, in which income, retail sales, and the value of output (manufactures, mineral, and agricultural) per capita are equally weighted. 3.MET: Percentage of population living in standard metropolitan areas 4.GROW: Percent change in population, 1950-1960 5.YOUNG: Percent of population aged 5-19 years 6.OLD: Percent of population over 65 years of age 7.WEST: Western state (1) or not (0) EX ECAB MET GROW YOUNG OLD WEST STATE 256 85.5 19.7 6.9 29.6 11.0 0 ME 275 94.3 17.7 14.7 26.4 11.2 0 NH 327 87.0 0.0 3.7 28.5 11.2 0 VT 297 107.5 85.2 10.2 25.1 11.1 0 MA 256 94.9 86.2 1.0 25.3 10.4 0 RI 312 121.6 77.6 25.4 25.2 9.6 0 CT 374 111.5 85.5 12.9 24.0 10.1 0 NY 257 117.9 78.9 25.5 24.8 9.2 0 NJ 257 103.1 77.9 7.8 25.7 10.0 0 PA 336 116.1 68.8 39.9 26.4 8.0 0 DE 269 93.4 78.2 31.1 27.5 7.3 0 MD 213 77.2 50.9 21.9 28.8 7.3 0 VA 308 108.4 73.1 22.2 28.0 8.2 0 MI 273 111.8 69.5 21.8 26.9 9.2 0 OH 256 110.8 48.1 18.3 27.5 9.6 0 IN 287 120.9 76.9 15.5 25.4 9.7 0 IL 290 104.3 46.3 14.9 27.4 10.2 0 WI 217 85.1 30.9 -7.4 30.0 9.3 0 WV 198 76.8 34.1 0.3 29.4 9.6 0 KY 217 75.1 45.8 8.1 28.9 8.7 0 TE 195 78.7 24.6 12.4 30.8 6.9 0 NC 183 65.2 32.2 12.9 32.9 6.3 0 SC 222 73.0 46.0 14.4 30.0 7.4 0 GA 283 80.9 65.6 77.2 25.5 11.2 0 FL 217 69.4 45.6 7.0 30.5 8.0 1 AL 231 57.4 8.6 0.5 32.1 8.7 1 MS 329 95.7 51.3 14.4 28.8 10.4 1 MN 294 100.2 33.2 5.3 27.3 11.9 1 IA 232 99.1 57.9 9.8 25.6 11.7 1 MO 369 93.4 10.6 2.9 30.2 9.3 1 ND 302 88.2 12.7 4.6 28.9 10.5 1 SD 269 99.1 37.6 6.8 26.6 11.6 1 NB 291 102.2 37.4 13.7 26.8 11.0 1 KS 323 86.0 5.0 21.9 30.3 7.4 1 LA 198 68.6 19.1 -6.2 29.4 10.9 1 AR 282 84.9 43.9 6.4 27.4 10.7 1 OK 246 98.8 63.4 24.1 28.8 7.8 1 TX 309 86.2 27.6 39.4 31.5 5.4 1 NM 309 90.2 71.4 74.3 29.7 6.9 1 AZ 334 97.6 22.6 13.4 28.9 9.7 1 MT 284 93.9 0.0 13.3 30.7 8.7 1 ID 454 125.8 0.0 13.7 29.1 7.8 1 WY 344 98.0 6.8 31.5 28.0 9.0 1 CO 307 92.5 67.5 28.7 31.9 6.7 1 UT 333 100.4 63.1 19.9 27.5 9.8 1 WA 343 98.0 50.4 15.7 27.7 10.4 1 OR 421 205.0 74.2 77.8 25.6 6.4 1 NV