- Provide and interpret descriptive statistics for “wage” (in $/hour) and “educ” (in years). [10 marks]
- Plot the dependent variable “wage” against the independent variable “educ”. What are your conclusions? Is the relationship linear? Is the relationship positive? [5 marks]
- Carry out an independent group T-test for Ho: mean wage for female is equal to mean wage for male. Are males paid a higher wage than females? [10 marks]
- Fit a multiple linear regression on “wage” (in $/hour), “educ” (in years), “exper” (in years), “non-white” (dummy variable=1 for non-white), “female” (dummy variable =1 for female) and “married” (dummy variable=1 for married). List the regression equation. Report the estimated results, interpret the coefficients and goodness-of-fit. [15 marks]
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