A company is keen on investing in expanding its market penetration in Africa opening an on-line shop to new potential African clients. For this reason, the company wants to understand the level of digital divide, measured by the total number of internet users in relation to total population, as a function of clients’ personal characteristics. Considering the following analysis based on a survey conducted in two main markets, Nigeria and Kenya, we have the following information to estimate the digital divide: Age: respondent’s age from 25 to 55 years old. Gender: 1 female, 0 male. Education level measured as years of schooling. Region: Kenya =1, Nigeria =0. As part of their work they have produced the following linear regression. Comment on the statistical significance, relative strength and direction of the relationships between the dependent variable and the independent variables

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A company is keen on investing in expanding its market penetration in Africa opening an on-line shop to new potential African clients. For this reason, the company wants to understand the level of digital divide, measured by the total number of internet users in relation to total population, as a function of clients’ personal characteristics. Considering the following analysis based on a survey conducted in two main markets, Nigeria and Kenya, we have the following information to estimate the digital divide:

 

  • Age: respondent’s age from 25 to 55 years old.
  • Gender: 1 female, 0 male.
  • Education level measured as years of schooling.
  • Region: Kenya =1, Nigeria =0.

 

As part of their work they have produced the following linear regression.

Comment on the statistical significance, relative strength and direction of the relationships between the dependent variable and the independent variables

Table 1 Regression results on the determinants of the digital divide
Dependent variable: % number of internet users
Wostandardised
coefficient
Independent variables
Standardised
coefficient
Significance
p-value
B
Constant
32.211
0.021
Age
0.121
0.146
0.010
Gender
-3.323
-0.157
0.006
Education
0.731
0.119
0.046
Region
1.522
0.433
0.129
R2
0.479
F-statistic
13.821
0.000
1340
Transcribed Image Text:Table 1 Regression results on the determinants of the digital divide Dependent variable: % number of internet users Wostandardised coefficient Independent variables Standardised coefficient Significance p-value B Constant 32.211 0.021 Age 0.121 0.146 0.010 Gender -3.323 -0.157 0.006 Education 0.731 0.119 0.046 Region 1.522 0.433 0.129 R2 0.479 F-statistic 13.821 0.000 1340
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