Calculate correlation coefficients, Econometrics

Assignment Help:

This problem refers to Doughtery's Educational Attainment and Earnings Functions (EAEF) data set, accessible through the course website. This data is a subset of the U.S. National Longitudinal Study of Youth 1979 (NLSY79). It is a nationally representative panel survey of young people aged 14 to 21 in 1979. Participants were surveyed annually from 1979-1994 and every other year afterwards. The EAEF subsample is made up of 22 randomly selected subsets of 540 individuals each (270 men and 270 women).

Examples in the text use subset 21. Use subset 1 for this problem. The following is a summary of the variables needed for this problem.

S              Years of schooling (highest grade completed as of 2002)

ASVABC     Composite score on the ASVAB, a standardized test of numerical and verbal ability with a mean of 50 and standard deviation of 10

ASVAB02    Score on the arithmetic reasoning section of the ASVAB test

ASVAB03    Score on the word knowledge section of the ASVAB test

ASVAB04    Score on the paragraph comprehension section of the ASVAB test

SM            Years of schooling of respondent's mother

Total work experience in years

Current hourly earnings in $

a) Using the data set, regress S on SM, SF, ASVAB02, ASVAB03, and ASVAB04 (3 components of the ASVABC composite score).

a. Report your coefficient estimates and standard errors. (You may simply submit your output for this part.)

b. Compare the coefficients and standard errors from part (a) to those from a regression of S on SM, SF, and ASVABC. Explain any differences.

c. Calculate correlation coefficients for the three ASVAB components.

b) Regress the logarithm of earnings on S and EXP. (You will need to create the new variable log(EARNINGS).) Interpret the regression results.

c) Assume that ASVABC is a measure of a person's ability that we expect to be positively correlated with S.

a. Regress S on ASVABC and SM. Interpret the coefficients and comment on their statistical significance.

b. Regress S on ASVABC only. Interpret the slope coefficient and comment on the statistical significance.

c. Regress S on SM only. Interpret the slope coefficient and comment on the statistical significance.

d. Compare the coefficients of ASVABC in the regressions from parts (a) and (b). Give mathematical and intuitive explanations of direction of the change.

e. Compare


Related Discussions:- Calculate correlation coefficients

Modelling and multicollinearity, write a term paper on modelling and multic...

write a term paper on modelling and multicollinearity

Determine the price level of graph, Suppose that the aggregate demand curv...

Suppose that the aggregate demand curve in a particular year is given by the algebraic           expression:  Y = 3000 + 1000/P, where Y is the aggregate output and P is t

#title.MULTICOLINEARLITY, HOW TO USE CORRELATION OF THE OFF DIAGONAL ELEMEN...

HOW TO USE CORRELATION OF THE OFF DIAGONAL ELEMENTS OF THE COVARIANCE MATRIX TO DETECT MULTICOLINEARLITY

Time series analysis, usefulness of time series in a business with a detail...

usefulness of time series in a business with a detailed explanation

Estimate the electrons speed, An electron follows a helical path in a unifo...

An electron follows a helical path in a uniform magnetic field of magnitude 0.422T. The pitch of the path is 6.81 mm, and the magnitude force on the electron is 1.59 x 10 -15 N. W

T-ratio test, about t-ratio test under multicolinarity

about t-ratio test under multicolinarity

Estimation, the demand for blankets has been estimated y^=0.5-1.5x2+3.0x3

the demand for blankets has been estimated y^=0.5-1.5x2+3.0x3

Rihgt now.., In June, Leslie wins a cash prize of $2,000. She plans to use ...

In June, Leslie wins a cash prize of $2,000. She plans to use this money to pay her tuition bill in September. Leslie puts this money in a savings a savings account because her mai

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd