PS4F10_Answers - Name: Peter the Anteater UC ID Number:...

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Name: Peter the Anteater UC ID Number: XXXXX Problem Set 4 Econ 122 B – Applied Econometrics Due Tuesday Nov. 17, 2009 at the beginning of lecture FIRST STEP: PLEASE TYPE YOUR NAME and UCI ID IN THE UPPER RIGHT CORNER OF THIS DOCUMENT. Just erase “Peter the Anteater” and type your name. The following problem set will use the 401K.wf1 file and the 401K_Description.pdf containing the variable description linked on the course webpage. For all questions, please paste the necessary output from eViews and answer the question below the output. You will then print this out, staple it , and hand it in on the due date. 1) We will be using E401K as our dependent variable. What kind of dataset are we using (time- series, cross-section, panel)? Is our dependent variable discrete or continuous? Based on our dependent variable, running OLS will give us what type of model? Give another type of model we can use other than OLS. The dataset we are using is cross-sectional data. Our dependent variable, E401K is a discrete variable (binary). Running OLS on a binary dependent variable will give us a LINEAR PROBABILITY model. We can use a probit model for discrete data as well. 2) Estimate the probability of being eligible for a 401K. Test the null hypothesis that eligibility of having a 401K is not affected by being married. (hint: consider simple linear probability models). Dependent Variable: E401K Method: Least Squares Date: 11/04/10 Time: 14:33 Sample: 1 9275 Included observations: 9275 White Heteroskedasticity-Consistent Standard Errors & Covariance Variable Coefficient Std. Error t-Statistic Prob. C 0.392129 0.005070 77.34686 0.0000 R-squared 0.000000 Mean dependent var 0.392129 Adjusted R-squared 0.000000 S.D. dependent var 0.488252 S.E. of regression 0.488252 Akaike info criterion 1.404136 Sum squared resid 2210.825 Schwarz criterion 1.404905 Log likelihood -6510.681 Hannan-Quinn criter. 1.404397 Durbin-Watson stat 1.939547 The probability of being eligible for a 401k is 39%.
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Dependent Variable: E401K Method: Least Squares Date: 11/04/10 Time: 14:37 Sample: 1 9275 Included observations: 9275 White Heteroskedasticity-Consistent Standard Errors & Covariance Variable Coefficient Std. Error t-Statistic Prob. C
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This note was uploaded on 11/28/2010 for the course ECON Economics taught by Professor Davidbrownstone during the Spring '10 term at UC Irvine.

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PS4F10_Answers - Name: Peter the Anteater UC ID Number:...

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