Assignment

Econ 390-01

Assignment 7 (this is the 6th assignment but refers to Module 7)

Due date is Tuesday Oct 14th 11:59 PM. Late submissions are not accepted.

YOU SHOULD ONLY AND ONLY WORK WITH RSTUDIO . IF YOU CORRECTLY ANSWER WITH EXCEL IT DOES NOT COUNT.

Import the CPS08 data attached in RStudio and answer the questions below:

1. How many variables and how many observations are in the dataset?

2. What is the sample average of “Bachelor”, “ahe”, “age”? Any number you report you should specify the unit of that number as well.

3. Provide a scatter plot of “ahe” over “age” (ahe is dependent variable)

4. Is there any correlation

5. What is the value of correlation between “ahe” and “age”?

6. Run a regression of “ahe” over “age”.

6.1. What is the population equation/model?

6.2. What is the predicted intercept and slope of your regression?

6.3. What is the predicted equation? write it down

6.4. What is the interpretation of the slope? (What is the effect of “age” on “ahe”)

6.5. What is the predicted “ahe” for someone who is 30 years old?

7. Provide the scatter plot and the include the predicted line between “ahe” and “age”

Please save your r-script and submit it as an attachment on canvas the way you submit other files. You can also save and attach the plot as a PDF file.

I explained all the steps for this assignment in the lecture videos, I just uses the College Distance data instead .