Suppose now that that Y denotes the annual salaries (in thousands of dollars) for US citizens who are in their 40s and 50; and X is an indicator (dummy) variable: X = 1 if that worker graduated from college and X=0 otherwise. Suppose the average annual salary for this age group is $45,000 and the estimate for β is β~ = 15 with s.e. = 5. b. What is the upper and lower bound of a 95-percent confidence interval for β~ ? c. In a credible research design attending college would be randomly assigned to a large sample of potential students. Propose such a research design. What are the potential ethical issues? d. The central problem with drawing credible casual inferences is that the counterfactual cannot be observed. What is the counterfactual in this case? What is a good strategy for obtaining the counter-factual? What are the ethical issues of doing this? b-d please!!!
Suppose now that that Y denotes the annual salaries (in thousands of dollars) for US citizens who are in their 40s and 50; and X is an indicator (dummy) variable: X = 1 if that worker graduated from college and X=0 otherwise. Suppose the average annual salary for this age group is $45,000 and the estimate for β is β~ = 15 with s.e. = 5. b. What is the upper and lower bound of a 95-percent confidence interval for β~ ? c. In a credible research design attending college would be randomly assigned to a large sample of potential students. Propose such a research design. What are the potential ethical issues? d. The central problem with drawing credible casual inferences is that the counterfactual cannot be observed. What is the counterfactual in this case? What is a good strategy for obtaining the counter-factual? What are the ethical issues of doing this? b-d please!!!
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose now that that Y denotes the annual salaries (in thousands of dollars) for US citizens
who are in their 40s and 50; and X is an indicator (dummy) variable: X = 1 if that worker
graduated from college and X=0 otherwise. Suppose the average annual salary for this age group
is $45,000 and the estimate for β is β~ = 15 with s.e. = 5.
b. What is the upper and lower bound of a 95-percent confidence interval for β~ ?
c. In a credible research design attending college would be randomly assigned to a large
sample of potential students. Propose such a research design. What are the potential ethical
issues?
d. The central problem with drawing credible casual inferences is that the counterfactual
cannot be observed. What is the counterfactual in this case? What is a good strategy for
obtaining the counter-factual? What are the ethical issues of doing this?
obtaining the counter-factual? What are the ethical issues of doing this?
b-d please!!!
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