Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Econometrics Expert

Instruction:
    
You have to use STATA to do the following problems. What you need to do is using the econometric model to deal with empirical problems. You will find the power of the OLS method, but also how complicated the real world could be. Some problems don’t have the exact answers, thus any creative answer encouraged, but you have to justify your answers briefly.

You need to do problems in groups. Each group contains 2-4 students. (If you really want to do everything by yourself, please let me know beforehand). Hand in one answer for each group. If you don’t agree with everything in the end, you can prepare down what you disagree separately. You are allowed to be in different groups for problem A and problem B. Your answers don’t have to be too long. If you hand in the answers more than ten pages, you will lose some points. Email both the teaching assistant and the instructor answers before the due time and we will reply an email to confirm. You only need to keep the STATA command, key results and brief explanations. The total point is 110, with 10 bonus points.

You can ask us any problem about STATA by email before Aug 20 8pm. We will group-email our response to make it a fair game for everyone. Basically, we have given all the commands you need to you in STATA tutorial files. But if you need to do something fancy, you may need some new commands. Also, the dataset has already included all variables necessary. However, if you want to include some new variables in problem B, it is encouraged. Let us know if you have any problem about how to input other format data to STATA.

problem A:

Use the dataset GPA1.DTA to do the following problems. We are interested in what factors will affect student’s college GPA. Use the command “describe” in STATA first to make sure you understand the meanings of all variables. You can always use 5% as the significance level and 95% as the confidence level.

1) Use log(colGPA) as the dependent variable, log(hsGPA), ACT, male, PC and gradMI as our independent variables.

A) prepare down the model.

B) Run the OLS regression, report your results. describe clearly what the slope coefficients mean separately.

C) Which variables are significant? Based on statistical analysis, which variables you suggest drop from the regression?

D) Report the confidence interval for all variables.

E) Do F-test for joint hypothesis that the gender and achievement scores do not have any effect on the college GPA, what does it tell you?

F) Based on problems C) and E), what’s your suggestion of improving the model? prepare down the new model, run the regression, and report the results. Do you think this new model is better than the original model? Why or why not?

2) Use colGPA as the dependent variable, hsGPA, gradMI, PC and the interaction term between gradMI and PC as our independent variables.

A) prepare down the model.

B) Run the OLS regression, report your results.

C) What is the estimated difference in colGPA between students who is “graduating from Michigan high school and having personal computer”, and students who is “NOT graduating from Michigan high school but having personal computer”? Test the null hypothesis that there is no difference against the alternative that there is a difference. (6 points)

D) What is the estimated difference in colGPA between students who is “graduating from Michigan high school but NOT having personal computer”, and students who is “NOT graduating from Michigan high school and NOT having personal computer”? Test the null hypothesis that there is no difference against the alternative that there is a difference. (6 points)

problem B:

The data is the U.S. Gasoline Market, 36 Yearly Observations, 1960-1995. We want to look for which variables will affect the consumptions of gas per person. You can always use 5% as the significance level and 95% as the confidence level. The data description is below.

Data description:

The U.S. Gasoline Market, 36 Yearly Observations, 1960-1995

Source: Economic Report of the President: 1996, Council of Economic Advisors, 1996.

G_pop = U.S. gasoline consumption per person, computed as total expenditure per person divided by price index.

Pg = Price index for gasoline,
Y = Per capita disposable income,
Pnc = Price index for new cars,
Puc = Price index for used cars,
Ppt = Price index for public transportation,
Pd = Aggregate price index for consumer durables,
Pn = Aggregate price index for consumer nondurables,
Ps = Aggregate price index for consumer services,
Pop = U.S. total population in millions.

1) Run the regression on only one independent variable. From microeconomic theory, we know the price is the key factor (Pg).

A) prepare down the model.
B) Run it. What result do you get? Do you think it makes sense?
C) What does the R-square say?

2) Run a multiple regression of consumptions per person on all other variables, but without the time trend and the population.

A) Report the result.
B) Do t-test for each coefficient. How do you describe the result?
C) Compare the coefficient on the price of gas with the first model. They are totally different, or almost the same? How could you describe this? Give one possible reason.

3) Use Log(G/Pop) as the dependent variable (generate logGPop=log(G_pop)), Log(Pg) and other variables except Pg you used in problem 2 as independent variables to run the regression. Report the result and what does the coefficient on Log(Pg) mean?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M91122

Have any Question? 


Related Questions in Econometrics

Imagine you are an information systems security specialist

Imagine you are an Information Systems Security Specialist for a medium-sized federal government contractor. The Chief Security Officer (CSO) is worried that the organization's current methods of access control are no lo ...

Visit the international monetary fund imf website and

Visit the International Monetary Fund (IMF) website and examine theRegional Economic Outlookreport. This report is identified in your required readings for this week. Select a country included within the Middle East and ...

A certain n-channel mosfet has a channel length of 2

A certain n-channel MOSFET has a channel length of 2 microns, a gate oxide thickness of 40 nm, and a channel mobility for electrons of 600 cm2/V s. The threshold voltage is 1 V. (a) What is the transit time of the electr ...

1 why might we expect a teacher on a fixed annual salary to

1. Why might we expect a teacher on a fixed annual salary to respond differently to a cut in the rate of income tax compared with a bricklayer paid according to the number of bricks laid? 2. How might labour markets be m ...

Read case study iii-2 a make-or-buy decision at baxter

Read Case Study III-2, "A Make-or-Buy Decision at Baxter Manufacturing Company," in Managing Information Technology. Write a 1,050- to 1,400-word (3- to 4-page) paper that addresses the following: · Identify the business ...

1what is linguistic style and what is the role of style in

1.What is linguistic "style," and what is the role of style in the construction of young people's identities, according to Bucholtz? (must be answered by the file I uploaded)(just 2 paragraphs) 2. give an example of spee ...

Johnny and june are divorcing and must divide their music

Johnny and June are divorcing and must divide their music collection, which contains two types of music: country and folk. A mediator suggests an initial division of the collection. Given the initial division, Johnny's M ...

Apply the four frames of organizations to a possible

Apply the four frames of organizations to a possible project that involves the development of a new technology like mobile banking, online retail, or social media. Work with two other class members in a virtual environme ...

A sheep rancher leased the mineral rights beneath her

A sheep rancher leased the mineral rights beneath her grazing land to an oil company. She fears that discharges from the oil wells will pollute her underground water resources. Consequently, the contract for the sale of ...

Using the following demand schedule compute marginal and

Using the following demand schedule, compute marginal and average revenue: Suppose the marginal costs of producing the good in exercise 5 is a constant $10 per unit of output. What quantity of output will the firm sell?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro