e311a7a.pdf - Murat DEMİRCİ and İnsan TUNALI Econ 311...

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Murat DEMİRCİ and İ nsan TUNALI November 8, 2018 Econ 311: Introduction to Econometrics Answers to ASSIGNMENT 7 See STATA supplement e311a7s.pdf Part I. Problems: Stock & Watson (GLOBAL Updated 3rd Ed!) The answers have mostly been supplied by the publisher. 4.3. (a) Slope: Average weekly earnings increases by $9.6 for each additional year of age, on average. Intercept: Predicted average weekly earning for someone who has age = 0 is $696.7. This is not a meaningful number; we are predicting outside the range of the data (age 25-65). Remark: The pdf of monthly earnings obtained from the Turkish Household Labor Force Survey 2016 is copied below. Other examples of (f) may be found in Figure 2-4 in S&W. 0 .0005 .001 .0015 0 2000 4000 6000 8000 10000 Nominal Gelir kernel = epanechnikov, bandwidth = 72.8450 Kernel density estimate
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