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Looks like we still need some permissions, too: what can location tell us about that?
Once we know how to do that, I'll turn you loose to collect some more data so that we can compute a few more Moran's Is for Newport, including over time.
In the case of Newport, the median incomes look like this (for 2013 ACS):
19779 ;; 501 51071 ;; 504 28507 ;; 505 24538 ;; 506 37917 ;; 524 55711 ;; 525 37772 ;; 532
0 0 0 1 0 0 1 ;; 501 0 0 1 0 1 0 1 ;; 504 0 1 0 1 1 1 1 ;; 505 1 0 1 0 0 1 0 ;; 506 0 1 1 0 0 1 0 ;; 524 0 0 1 1 1 0 0 ;; 525 1 1 1 0 0 0 0 ;; 532
The pattern that we'd like to be able to distinguish is called the null hypothesis. Often we want to detect departures from spatial randomness. If that is the case, as you can see from the distribution, we can't do that -- the MI for the data is right in the middle. On the other hand, we are really interested in detecting if there is something different about the west side, so we might decide which census tracts make up the west side, and then look for departures from an east side/west side split.
Let's turn our attention back to the simpler case of the 2x2 example, but using different data.
Compute Moran's I for the data