ECON 425 ASSIGNMENT 3 S.C. AHN DUE OCTOBER 20 (Thursday) Credits will be given only if you do report all of the relevant estimation outcomes. Print out Eviews estimation and forecasting outcomes. The necessary data file (wage2.wf1) can be downloaded from q: \courses\ecn425 or the blackboard.1. (20 pts.; 5 pts. on each.) Use wage2.wf1. Each variable is defined in the class notes (p. 8 of Multiple Regression). (1) Plot WAGE against EDUC. [Hint: Go to the Eviews Window and type, "show EDUC WAGE". Then, click view/graph/Scatter/Simple Scatter.] Based on the scatterplot, can you say that EDUC and WAGE are positively correlated? (2) Plot LWAGE against EDUC. Based on the scatterplot, can you say that EDUC and LWAGE are positively correlated? (3) Consider LWAGE, WAGE, and EDUC. Report the means, standard deviations, minima and maxima of these variables. (4) Report the sample correlations among these variables. Which of WAGE and LWAGE is more highly correlated with EDUC?
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