Question

* Use Wage1.dta

regress lwage educ exper tenure

test educ - exper==0

test exper tenure

regress lwage educ

COMPUTER OUTPUT # 2

COMPUTER OUTPUT # 3

#

library(ISLR)

attach(Hitters)

dim(Hitters)

# Checking for missing observations on the Salary variable. There are 59.

sum(is.na(Hitters$Salary))

# Drop the observations that have missing salary observations.

Hitters <- na.omit(Hitters)

dim(Hitters)

summary(Hitters)

#

Years2 <- (Hitters$Year)^2

# Part (a) Quadratic term

model1 <- lm(Salary ~ CHits+Years+Years2,

data=Hitters)

summary(model1)

# Part (b) Standardized Regression

model2 <- lm(scale(Salary) ~ -1 + scale(CRuns)+scale(CRBI)

+Years+Years2,data=Hitters)

summary(model2)

# Part (c) A Test using the standardized regression

x = Hitters$CRuns + Hitters$CRBI

model3 <- lm(scale(Salary) ~ -1+scale(x)+Years+Years2,

data=Hitters)

summary(model3)

anova(model2,model3)

# Part (d) Chow Test

model4 <- lm(Salary~CRuns,data=Hitters)

summary(model4)

model5 <- lm(Salary~League+CRuns+CRuns*League,data=Hitters)

summary(model5)

anova(model4,model5)

PART (A)

PART (B)

PART (C)

PART (D)