Assignment 1

pdf

School

Pasadena City College *

*We aren’t endorsed by this school

Course

140

Subject

Economics

Date

Feb 20, 2024

Type

pdf

Pages

7

Uploaded by BailiffStrawBoar21

Report
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Assignment 1 2024-01-21 2.28(a) Summary: library (POE5Rdata) summary ( lm (wage ~ educ, cps5_small)) ## ## Call: ## lm(formula = wage ~ educ, data = cps5_small) ## ## Residuals: ## Min 1Q Median 3Q Max ## -31.785 -8.381 -3.166 5.708 193.152 ## ## Coefficients: ## Estimate Std. Error t value Pr(>|t|) ## (Intercept) -10.4000 1.9624 -5.3 1.38e-07 *** ## educ 2.3968 0.1354 17.7 < 2e-16 *** ## --- ## Signif. codes: 0 *** 0.001 ** 0.01 * 0.05 . 0.1 1 ## ## Residual standard error: 13.55 on 1198 degrees of freedom ## Multiple R-squared: 0.2073, Adjusted R-squared: 0.2067 ## F-statistic: 313.3 on 1 and 1198 DF, p-value: < 2.2e-16 1
par ( mfrow = c ( 1 , 2 )) hist (cps5_small $ wage, xlab= "Earnings Per Hour" , main= "Histogram of Wages" ) hist (cps5_small $ educ, xlab= "Years of Education" , main= "Historgram of Education" ) Histogram of Wages Earnings Per Hour Frequency 0 50 100 200 0 100 300 500 Historgram of Education Years of Education Frequency 0 5 10 15 20 0 50 100 200 300 The histogram for WAGE is right-skewed, indicating that most of the observations lie between the hourly earnings of 0 to 50. The median shows that half of the sample earns more than 19.3 dollars per hour, while the mean is at 23.64 dollars an hour. The maximum earned in this sample is 221.1 dollars per hour and the least earned in this sample is 3.94 dollars per hour. The histogram for EDUC , on the other hand, is left-skewed, indicating that most people had at least 12 years of education. There are a few observations at less than 12, representing those who did not complete high school. The median shows that half of the sample has had more than 14 years of education, while the mean is at 14.2 years. This means that half of the sample only reached two years of a bachelor’s degree or have finished an associate’s. 2.28(b) regout <- lm (wage ~ educ, cps5_small) coef (regout) ## (Intercept) educ ## -10.399959 2.396761 Estimated Equation: WAGE = -10.399959 + 2.396761 EDUC The slope of 2.396761 represents the estimated increase in the expected hourly wage rate for an extra year of education. The intercept -10.399959 represents the estimated wage rate of a worker with no years of education. It should not be considered meaningful as it is not possible to have a negative hourly wage rate. 2
2.28(c) plot (cps5_small $ educ,regout $ residuals, xlab= "EDUC" , ylab= "RESIDUAL" , main= "Residual against Education" ) 0 5 10 15 20 0 50 100 150 200 Residual against Education EDUC RESIDUAL There is a pattern evident; as EDUC increases, the magnitude of the residuals also increases, suggesting that the error variance is larger for larger values of EDUC – a violation of the assumptions. If the assumptions SR1-SR5 hold, there should not be any patterns evident in the residuals. 2.28(d) coef ( lm (wage ~ educ, cps5_small, subset = (female == 0 ))) ## (Intercept) educ ## -8.284936 2.378471 coef ( lm (wage ~ educ, cps5_small, subset = (female == 1 ))) ## (Intercept) educ ## -16.602785 2.659487 coef ( lm (wage ~ educ, cps5_small, subset = (black == 0 ))) ## (Intercept) educ ## -10.474710 2.417769 coef ( lm (wage ~ educ, cps5_small, subset = (black == 1 ))) ## (Intercept) educ ## -6.254114 1.923330 Male: WAGE = -8.284936 + 2.378471 EDUC 3
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Female: WAGE = -16.602785 + 2.659487 EDUC White: WAGE = -10.474710 + 2.417769 EDUC Black: WAGE = -6.254114 + 1.923330 EDUC The variables male, female, black, and white are all indicator variables, meaning they either are or are not that specific demographic. With a slope of 1.92330, in comparison to all other variables, the estimated increase in the expected hourly wage rate for an extra year of education for black workers is relatively smaller. On the other hand, with every extra year of education, female workers had the highest estimated increase in the expected hourly wage rate. 4

Related Documents

Econ101_W23_MT1_vA_questions.pdf
IMG_6996.png
SCI200_Section_016_Week_03_Quizz_4.docx
business marketing.docx
SA3_RSolution_Econ140.pdf
Practice Exam#1.pdf
LS30A - Final.pdf
Midterm1_solution.pdf
Excel Pie Charts Directions-1.pdf
Discussion Case #2 - Craft Beer.docx
Supply+Chain+Case+Study_Master+Tag.docx
Chapter 23 Review Questions.docx
Recommended textbooks for you
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
SEE MORE TEXTBOOKS
Recommended textbooks for you
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
SEE MORE TEXTBOOKS