Rstudio

Econ 390-01 Assignment 13 Due date is Wednesday, Nov 25th 11:59 PM. Late submissions are not accepted.

1. Open the data “ch8_cps” on Rstudio 2. How many variable, number of observaPons, and dummy variables do we have? 3. Run a regression of ahe on age, what is the model and what is the predicted equaPon 4. What is the effect of age on ahe? 5. Provide the scaUer plot and the fiUed regression line. 6. Run a non-linear cubic regression of ahe on age (meaning run ahe on age, age squared,

and age cubic. ) 7. Write down the model and the predicted equaPon for part 6. 8. Looking at the significance of the cubic term in regression part 6, do you prefer this

model (cubic) or would you go with a quadraPc model? Or even a linear model? 9. In part 6 what is the effect of age on ahe ? is it easy to read? (No) 10. Provide/add the fiUed curve of regression part 6 on the scaUer plot (you did in part 5). 11. Run a mulPple regression of ahe over age, age squared, age cubic, female, yrseduc. (all

in 1 regression). Which coefficients are significant? why? 12. What is the RSquared of regression you run in part 11? What does this number mean?