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Average participation rate and the average match rate

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Reference no: EM131257335

The data in 401K.RAW are a subset of data analyzed by Papke (1995) to study therelationship between participation in a 401(K) pension plan and the generosity of theplan. The variable "prate" is the percentage of eligible workers with an active account;this is the variable we would like to explain. The measure of generosity is the planmatch rate, "mrate." This variable gives the average amount the firm contributes toeach worker's plan for each $1 contribution by the worker. For example, if "mrate" =0.50, then a $1 contribution by the worker is matched by a 50 cent contribution by thefirm.(i) Find the average participation rate and the average match rate in the sample of plans.

Reference no: EM131257335

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