MATTU UNIVERSITY BEDELLE CAMPUS

COLLAGE OF NATURAL RESOURCE AND AGRICULTURAL

ECONOMICS
DEPARTEMENT OF AGRICULTURAL ECONOMICS
GROUP ASSIGNMENT OF COMPUTER APPLICATION IN AGRICULTURAL
ECONOMICS

NAME OF GROUP MEMBERS ID: NO

1. GUDINA JEMAL RU 4290/13
2. FEYISA MIRESA RU 3715/13
3. GUTEMA LAMU RU 4359/13
4. FEKADU TESSEMA RU 1193/13
5. HAWA FIKADU RU 4767/13
6. HALIED AJAYBT RU 0771/13
7. GETASEW TEGEGNE RU 1543/13
8. GETAW FIKADIE RU 1717/13
9. GEZACHEW SHEGAW RU 1704/13
10. GEZU SEYOUM RU 3749 /13

SUBMITTED TO: TESFAYE SOLOMON (MSc)

SUBMISSION DATE: FEB, 14/2024

FEB, 2024
BEDELE, ETHIOPIA
 A. Calculate the percentage of both male and female included in the survey
using STATA software and show your result on pie chart. Finally, copy
paste your result here using copy as picture.

Sexofhouseh
olds Freq. Percent Cum.

Male 15 50.00 50.00

Female 15 50.00 100.00

Total 30 100.00

50%
50%

Male Female

 50% of household included in the research is male headed and 50% of household
included in the research is female headed.

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 B. Calculate both t test and z test of respective variables using STATA
software and copy pest your result here using copy as picture. Then,
explain whether your tests are significant or not !!

t test for respective variable and explanation

. use "C:\Users\Administrator\Desktop\Gudex and Faye group.dta", clear

. ttest log_Age, by(Adoption)

Two-sample t test with equal variances

Group Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

No 16 3.880398 .0847537 .339015 3.69975 4.061046

Yes 14 4.060519 .0490186 .1834108 3.954621 4.166417

combined 30 3.964455 .0525611 .2878893 3.856955 4.071954

diff -.1801211 .1016748 -.3883924 .0281502

diff = mean(No) - mean(Yes) t = -1.7715

Ho: diff = 0 degrees of freedom = 28

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(T < t) = 0.0437 Pr(|T| > |t|) = 0.0874 Pr(T > t) = 0.9563

 Since its significant at 10% , we reject the null hyphothesis means we accept alternative
hyphothesis and conclude that there is there is significant difference between adopter and
non adopter interms of age.

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. ttest Education, by(Adoption)

Two-sample t test with equal variances

Group Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

No 16 5.625 .9437293 3.774917 3.613489 7.636511

Yes 14 9.428571 .8815214 3.298351 7.52416 11.33298

combined 30 7.4 .7296669 3.99655 5.907664 8.892336

diff -3.803571 1.30341 -6.473485 -1.133657

diff = mean(No) - mean(Yes) t = -2.9182

Ho: diff = 0 degrees of freedom = 28

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(T < t) = 0.0034 Pr(|T| > |t|) = 0.0069 Pr(T > t) = 0.9966

 Since its significant at 10% , we reject the null hyphothesis means we accept alternative
hyphothesis and conclude that there is there is significant difference between adopter and
non adopter interms of education.

. ttest log_Totalincomefromlivestock, by(Adoption)

Two-sample t test with equal variances

Group Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

No 16 11.15557 .133199 .532796 10.87166 11.43948

Yes 14 10.68629 .204533 .7652923 10.24442 11.12815

combined 30 10.93657 .1246429 .6826971 10.68165 11.19149

diff .469285 .2382957 -.0188416 .9574115

diff = mean(No) - mean(Yes) t = 1.9693

Ho: diff = 0 degrees of freedom = 28

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(T < t) = 0.9706 Pr(|T| > |t|) = 0.0589 Pr(T > t) = 0.0294

 Since its significant at 10% , we reject the null hyphothesis means we accept alternative
hyphothesis and conclude that there is there is significant difference between adopter and
non adopter interms of total income from livestock.

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. ttest Distance, by(Adoption)

Two-sample t test with equal variances

Group Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

No 16 5.83125 .6902125 2.76085 4.360097 7.302403

Yes 14 3.085714 .8396662 3.141743 1.271726 4.899703

combined 30 4.55 .586177 3.210624 3.351133 5.748867

diff 2.745536 1.077331 .5387235 4.952348

diff = mean(No) - mean(Yes) t = 2.5485

Ho: diff = 0 degrees of freedom = 28

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(T < t) = 0.9917 Pr(|T| > |t|) = 0.0166 Pr(T > t) = 0.0083

 Since its significant at 5% , we reject the null hyphothesis means we accept alternative
hyphothesis and conclude that there is there is significant difference between adopter and
non adopter interms of distance.

. ttest log_incomefromofffarm, by(Adoption)

Two-sample t test with equal variances

Group Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

No 16 9.631639 .2311136 .9244546 9.139032 10.12425

Yes 14 10.32185 .2257137 .8445433 9.834226 10.80948

combined 30 9.953737 .1717008 .9404438 9.60257 10.3049

diff -.6902118 .3250653 -1.356078 -.0243458

diff = mean(No) - mean(Yes) t = -2.1233

Ho: diff = 0 degrees of freedom = 28

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(T < t) = 0.0214 Pr(|T| > |t|) = 0.0427 Pr(T > t) = 0.9786

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  Since its significant at 5% , we reject the null hyphothesis means we accept alternative
hyphothesis and conclude that there is there is significant difference between adopter and
non adopter interms of income from off farm.

. ttest Levelofadoption, by(Adoption)

Two-sample t test with equal variances

Group Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

No 16 0 0 0 0 0
Yes 14 .7585714 .0578066 .2162924 .6336879 .883455

combined 30 .354 .075084 .4112521 .2004359 .507564

diff -.7585714 .053935 -.8690522 -.6480906

diff = mean(No) - mean(Yes) t = -14.0646

Ho: diff = 0 degrees of freedom = 28

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(T < t) = 0.0000 Pr(|T| > |t|) = 0.0000 Pr(T > t) = 1.0000

 Since its significant at 1% , we reject the null hyphothesis means we accept alternative
hyphothesis and conclude that there is there is significant difference between adopter and
non adopter interms of level of adoption.

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 z test for respective variable and explanation

. ztest Sexofhouseholds, by(Adoption)

Two-sample z test

Group Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

No 16 .4375 .25 1 -.052491 .927491

Yes 14 .5714286 .2672612 1 .0476062 1.095251

diff -.1339286 .3659625 -.8512019 .5833448

diff = mean(No) - mean(Yes) z = -0.3660

Ho: diff = 0

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(Z < z) = 0.3572 Pr(|Z| > |z|) = 0.7144 Pr(Z > z) = 0.6428

 Since its not significant , we reject the alternative hyphothesis means we accept null
hyphothesis and conclude that there is there is no significant difference between adopter
and non adopter interms of sex of household.

. ztest Maritalstatus, by(Adoption)

Two-sample z test

Group Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

No 16 1.4375 .25 1 .947509 1.927491

Yes 14 1.642857 .2672612 1 1.119035 2.16668

diff -.2053571 .3659625 -.9226305 .5119162

diff = mean(No) - mean(Yes) z = -0.5611

Ho: diff = 0

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(Z < z) = 0.2874 Pr(|Z| > |z|) = 0.5747 Pr(Z > z) = 0.7126

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  Since its not significant , we reject the alternative hyphothesis means we accept null
hyphothesis and conclude that there is there is no significant difference between adopter
and non adopter interms of marital status.

C. Compute the linear regression to investigate if Sex, Age(log), Education, Total

income from livestock(log), Income from off farm(log), Distance and Marital status
can affect the participation of households in adopting improved coffee production in
Bedele Woreda

. use "C:\Users\Administrator\Desktop\Gudex and Faye group.dta", clear

. regress Adoption Sexofhouseholds Age Education log_Totalincomefromlivestock log_incomefromofffar

> m Distance Maritalstatus, vce(robust)

Linear regression Number of obs = 30

F(7, 22) = 11.31
Prob > F = 0.0000
R-squared = 0.4834
Root MSE = .41872

Robust
Adoption Coef. Std. Err. t P>|t| [95% Conf. Interval]

Sexofhouseholds .2516916 .1758041 1.43 0.166 -.1129039 .616287

Age .0036296 .0052226 0.69 0.494 -.0072015 .0144606
Education .0319637 .0180777 1.77 0.091 -.0055271 .0694545
log_Totalincomefromlivestock -.1965626 .1089351 -1.80 0.085 -.4224802 .029355
log_incomefromofffarm .1097308 .0812731 1.35 0.191 -.0588192 .2782809
Distance -.0414602 .0291738 -1.42 0.169 -.101963 .0190426
Maritalstatus .0853646 .0995571 0.86 0.400 -.1211042 .2918335
_cons 1.020993 1.478175 0.69 0.497 -2.044555 4.08654

D. Interpret the all coefficients of the parameters.

 There is positive relationship between sex of household and adoption; this implies
that as sex of household increase by one person, adoption could be increased by
0.2516916
 There is positive relationship between age and adoption; this implies that as age of
household increase by one year, adoption could be increased by 0.0036296
 There is positive relationship between education and adoption; this implies that as
education of household increase by one level, adoption could be increased by
0.0319637

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  There is negative relationship between total income from livestock(log) and
adoption; this implies that as total income from livestock(log) of household increase
by one birr, adoption could be decreased by 0.1965626
 There is positive relationship between income from off farm(log) and adoption; this
implies that as income from off farm(log) of household increase by one birr,
adoption could be increased by 0.1097708
 There is negative relationship between distance and adoption; this implies that as
distance from household increase by one km, adoption could be decreased by
0.0414602
 There is positive relationship between marital status and adoption; this implies that
as marital status of household increase by one person, adoption could be increased
by 0.853646

E. Write the equation of linear regression model.

Adoption =B0 +B sex + B Age (log) + B Education -B Total income from livestock (log) +B Income from

off farm(log) - B Distance + B Marital status

ADOPTION = 1.02 + 0.251SEX + 0.0036Age + 0.0319 Education – 0.196 Total income from livestock

(log) + 0.1097 Income from off farm (log) – 0.0414 Distance + 0.0853 Marital status

F. Estimate the truncated regression model to investigate if Sex, Age (log),

Education, Total income from livestock (log), Income from off farm
(log), Distance and Marital status can affect the participation of
households in adopting improved coffee production in Bedele Woreda.

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. truncreg Adoption Sexofhouseholds log_Age Education log_Totalincomefromlivestock log_incomefrom
> offfarm Distance Maritalstatus, ul(Age)
(note: 0 obs. truncated)

Fitting full model:

Iteration 0: log likelihood = -12.479214

Iteration 1: log likelihood = -12.147826
Iteration 2: log likelihood = -11.828258
Iteration 3: log likelihood = -11.826891
Iteration 4: log likelihood = -11.82689

Truncated regression
Limit: lower = -inf Number of obs = = 30
upper = Age Wald chi2(7) = 27.97
Log likelihood = -11.82689 Prob > chi2 = 0.0002

Adoption Coef. Std. Err. z P>|z| [95% Conf. Interval]

Sexofhouseholds .2569844 .1567005 1.64 0.101 -.0501429 .5641117

log_Age .1722751 .257147 0.67 0.503 -.3317238 .676274
Education .0312332 .0191578 1.63 0.103 -.0063154 .0687818
log_Totalincomefromlivestock -.1931422 .1021963 -1.89 0.059 -.3934434 .0071589
log_incomefromofffarm .108333 .0796323 1.36 0.174 -.0477435 .2644095
Distance -.0420342 .0243329 -1.73 0.084 -.0897257 .0056574
Maritalstatus .0847144 .0744986 1.14 0.255 -.0613003 .2307291
_cons .5194274 1.729083 0.30 0.764 -2.869513 3.908368

/sigma .3589009 .0463339 7.75 0.000 .2680881 .4497137

more

 Total income from livestock (log) can significantly affect the participation of
households in adopting improved Coffee production in Bedele Woreda at 10%
significant level, (0.059) (5.9%).
 Distance can significantly affect the participation of households in adopting
improved Coffee production in Bedele Woreda at 10% significant level, (0.084)
(8.4%).

G. Interpret all variables that can affect the level of the participation of
households in adopting improved coffee production in Bedele Woreda.

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. use "C:\Users\Administrator\Desktop\Gudex and Faye group.dta", clear

. regress Adoption Sexofhouseholds Age Education log_Totalincomefromlivestock log_incomefromofffar

> m Distance Maritalstatus, vce(robust)

Linear regression Number of obs = 30

F(7, 22) = 11.31
Prob > F = 0.0000
R-squared = 0.4834
Root MSE = .41872

Robust
Adoption Coef. Std. Err. t P>|t| [95% Conf. Interval]

Sexofhouseholds .2516916 .1758041 1.43 0.166 -.1129039 .616287

Age .0036296 .0052226 0.69 0.494 -.0072015 .0144606
Education .0319637 .0180777 1.77 0.091 -.0055271 .0694545
log_Totalincomefromlivestock -.1965626 .1089351 -1.80 0.085 -.4224802 .029355
log_incomefromofffarm .1097308 .0812731 1.35 0.191 -.0588192 .2782809
Distance -.0414602 .0291738 -1.42 0.169 -.101963 .0190426
Maritalstatus .0853646 .0995571 0.86 0.400 -.1211042 .2918335
_cons 1.020993 1.478175 0.69 0.497 -2.044555 4.08654

 Education can significantly affect the participation of households in adopting

improved Coffee production in Bedele Woreda at 10% significant level, (0.091)
(9.1%).
 Total income from livestock (log) can significantly affect the participation of
households in adopting improved Coffee production in Bedele Woreda at 10%
significant level, (0.085) (8.5%).

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