Estimating the conditional standard deviation of some living standard |
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The following figure shows a scatter plot of the beninese household expenditures for 1996 and 1999. |
To show the conditional standard deviation of these expenditures: |
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One can normalise this standard deviation by the expected level of Y (the expected total expenditures in the final period at a given level for the initial period). To do this, select the option "Normalised by the expected value of Y" |
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Instead of initial income, one can use average income of the household across the two years. |
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