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Unformatted text preview: Instructor : H.H. Kim Econometrics 1 Practice Questions IV 1) The survey conducted each March is more detailed than in other months and asks questions about earnings during the previous year. The file CPS04 contains the data for 2004 (from the March 2005 survey). These data are for full-time workers, defined as workers employed more than 35 hours per week for at least 48 weeks in the previous year. Data are provided for workers whose highest educational achievement is (1) a high school diploma, and (2) a bachelors degree. Series in Data Set: - FEMALE: 1 if female; 0 if male - YEAR: Year - AHE : Average Hourly Earnings - BACHELOR: 1 if worker has a bachelors degree; 0 if worker has a high school degree Two regression is done here. First regression (a) is about AHE on Age. And regression (b) is for AHE on Age, Female and Bachelor. Regressor Model a b Age 0.60 (0.04) 0.59 (0.04) Female 3.66 (0.21) Bachelor 8.08 (0.21) Intercept 1.08 (1.17) 0.63 (1.08) SER 9.99 9.07 R 2 0.029 0.200 2 R 0.029 0.199 N 4000 4000 a. Are the results from the regression (b) substantively different from the result in (a) regarding the effects of Age and AHE? Does the regression in (a) seem to suffer from the omitted variable bias? b. Bob is a 26-year old male worker with a high school diploma. Predict Bobs earnings using the estimated regression in (b). c. Alexis is a 30-year old female worker with a college degree. Predict Alexiss earnings using the estimated regression in (b). d. Test the null hypothesis that both Female and Bachelor can be deleted from the regression. e. Test the null hypothesis that Female can be deleted from the regression. f. Test the null hypothesis that Bachelor can be deleted from the regression. Fall 20 2) Using followin where Te (average a. Interpr b. In you with "for c. The "o d. Find th regressio e. The ab error for 3) Femal you colle calculate the male (a) Calcu differenc (b) A pee labor ma (c) You r earnings used mea Assumin earnings = 3 (2 11 g the 420 obs ng relationshi estScore is th e = 44.7, max ret the regres ur interpretati r every x per overall" regre he critical va on R 2 = 0. bove equatio the slope co les, it is said, ect data on w e their averag es made $517 ulate the fem ce is statistica er suggests th arket. What is recall from y . You reason asure for (po ng, heroically on age and a 323.70 + 5.15 1.18) (0.5 ervations of p: he test score a x = 100, min ssion result....
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This note was uploaded on 01/17/2012 for the course ECONOMICS 322 taught by Professor Derekdelia during the Fall '09 term at Rutgers.
- Fall '09