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Problem Set 10

The following data set titled “Looks data set” comes from a paper written by Daniel Hammermesh analyzing the effects of beauty on wages (remember the Daily Show?). Use the data set that corresponds to the color of the exam

  1. How many individuals have at least some college, interpreted by having more than 12 years of education? (5 points)
  • Fill in the Means in the following table: (18 points)
 Full SampleMalesFemales
Wage         
Education           
Race is Black             
  • Create a histogram table AND bar chart of education. The histogram should have bins with a width of 2. Copy and paste it below.
  • A recent report comes out that says the average wage for a worker is $6 per hour. You are skeptical of this claim. Provide a test to see if the claim is true. State your conclusion. (Alpha to evaluate significance is 0.05.)
  • Another report comes out that says the average level of education is 12.5 years. You are skeptical of this claim. Provide a test to see if the claim is true. State your conclusion.
  • Yet another report (aren’t reports fun?) makes the following claim: Men and women have different wages due to significant differences in levels of education. Test the claim to see if men and women have different levels of education. State your conclusion.

Use the following model for questions 7-8

  • Interpret  (5 points)
  • Interpret  (5 points)

Use the following model for questions 9-14 (let average looks be defined as those with a rating of 3)

  • Estimate the model (write out the estimated equation) and include your regression output below.
  1. Interpret  (5 points)
  1. Interpret  (5 points)
  1. Do above average looking people get paid differently than average looking people? Explain. (10 points)
  1. Do below average looking people get paid differently than average looking people? Explain. (10 points)
  1. Interpret the R-squared (5 points)

The following comes from estimating a regression looking at factors that influence college GPA (colGPA), on a 4-point scale. Independent variables include score on SAT (sat), total credit hours (tothrs), dummy variable if student-athlete (athlete), size of high school (hsize), high school rank (hsrank), dummy variable for female (female), dummy variable for race is white (white), and dummy variable for race is black (black). 

  1. What impact does increasing SAT score by 100 have on college GPA? Explain. (5 points)
  1. What is the difference in GPA between student-athlete and non-student athletes? Explain. (5 points)
  1. Do white students have higher GPA’s than students who are not black? Explain. (5 points)