Total 8 questions. Need to answer all these questions.
Answer all the questions. Show all numerical answers to 3 decimal places. Carry out all tests
using a 5% level of significance. You may include Stata outputs in your answers, but your
own interpretations and explanations are necessary for earning marks.
Questions
1. (4 pts) Fit an educational attainment function using your data set by regressing \ud835\udc46 on
\ud835\udc34SVABC, \ud835\udc46M, and \ud835\udc46F. Interpret the regression results. Perform t tests on the coefficients of
the variables, and a F test of the explanatory power of the model.
2. (4 pts) Regress the logarithm of \ud835\udc38ARNINGS on \ud835\udc46, \ud835\udc38XP, and \ud835\udc40ALE. Interpret the regression
results. Perform t tests on the coefficients of the variables, and a F test of the explanatory
power of the model.
3. (3pts) Regress logarithm of \ud835\udc38ARNINGS on \ud835\udc46, \ud835\udc38XP, \ud835\udc40ALE, \ud835\udc38THHISP, and \ud835\udc38THBLACK.
Interpret the regression results and perform t tests on the coefficients.
4. (3 pts) Perform a F test of joint explanatory power of \ud835\udc38THHISP and \ud835\udc38THBLACK using \ud835\udc45^2
and verify it is the same as the F statistic in your Stata output.
5. (2 pts) Relying on your findings in questions 3 and 4, are earnings subject to ethnic
discrimination?
6. (4 pts) Define a new variable as the product of \ud835\udc40ALE and \ud835\udc46, call it SLOPE. Regress the
logarithm of \ud835\udc38\ud835\udc38ARNINGS on \ud835\udc46, EXP, MALE, \ud835\udc38\ud835\udc38THHISP, ETHBLACK, and \ud835\udc46LOPE. Interpret
the equation and perform appropriate statistical tests (t tests of the coefficients and F test of
the model). Is the effect of education on earnings different for males and females? Explain.
7. (5 pts) The composite measure of cognitive ability, \ud835\udc34SVABC, in the data set was constructed
as a weighted average of the scores of tests of arithmetic reasoning (\ud835\udc34\ud835\udc34SVABAR), word
knowledge (\ud835\udc34SVABWK), and paragraph comprehension, (\ud835\udc34SVABPC), with \ud835\udc34SVABAR
being given double weight. Show mathematically that, when fitting the educational
attainment model based on the composite measure:
\ud835\udc46 = \ud835\udefd1 \ud835\udefd2\ud835\udc46M \ud835\udefd3\ud835\udc46F \ud835\udefd4\ud835\udc34SVABC \ud835\udc62
instead of the model based on the individual scores:
\ud835\udc46 = \ud835\udefd1 \ud835\udefd2 \ud835\udefd3\ud835\udc46F \ud835\udefe1\ud835\udc34\ud835\udc34SVABAR \ud835\udefe2\ud835\udc34SVABWK \ud835\udefe3\ud835\udc34SVABPC \ud835\udc62
one is implicitly imposing the restrictions \ud835\udefe1 = 2\ud835\udefe2 and \ud835\udefe1 = 2\ud835\udefe3. Perform a test of these
restrictions using your data set.
8. (5 pts) Using the model based on the individual scores (the second model in the previous
question), test the restrictions that \ud835\udefe1 = \ud835\udefe2 = \ud835\udefe3 = 0, and that \ud835\udefe1 \ud835\udefe2 \ud835\udefe3 = 0 (note:
these are two separate hypotheses). Intuitively, which of these two tests is more restrictive?
Give a brief answer based on the (economic) intuition and the (statistical) results of these
two tests. <\/p>\n","protected":false},"excerpt":{"rendered":"
Total 8 questions. Need to answer all these questions. Answer all the questions. Show all numerical answers to 3 decimal places. Carry out all tests using a 5% level of significance. You may include Stata outputs in your answers, but your own interpretations and explanations are necessary for earning marks. Questions 1. (4 pts) Fit […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-53586","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/53586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=53586"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/53586\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=53586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=53586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=53586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}