ECON-3740 Introduction to Econometrics - Fall, 2014
Instructor: D Prescott
Due date: Thursday, 16 October, 3pm
Submit Reports to D Prescott's Ofﬁce, Room 733 MacKinnon
Report #1 - Instructions.
No reports will be accepted after the deadline. Please submit what you have completed by the deadline. See the course web page for additional information on programming and spreadsheet hints. BE SURE TO USE
THE DATA SET ASSIGNED TO YOU
Grades will be assigned to each section. The report's introduction and conclusion have a weight of 10% - see below for the weights of other sections.
Task 1: Summary Statistics & Histograms (25%)
In this part, the objective is to present and discuss aspects of the Labour Force Survey data. Histograms and a series of summary statistics will be used for this purpose.
(1a) Plot histograms for the following variables: Tenure, hourly wage, age and education. Produce separate histograms for males and females (8 histograms in total). Label the histograms as Charts 1 to 8. Note that the raw data on age and education are categories that must be converted to numerical data before plotting. Each chart should be approriately annotated. In each case, select and justify a suitable number of "bins" that is appropriate to each variable. For the wage plots, use variable bin widths. It is advisable to make your own decisions about bin selection rather than simply replicate what might be illustrated in a lab or on the course web site.
(1a) Use R to compute summary statistics corresponding to the variables used in Charts 1 to 8 using the full sample. The summary statistics should include a measure of skewness. If you have plotted a subset of data, also compute summary statistics for the subset and relate these statistics to the relevant chart.
Include and discuss all the statistics in your report. Be sure to explain statistical concepts in an intuitive way and identify the units of measure. Relate the statistics to the