Jarius Lee Econometric HW
Q1.
1. Mean = 201.476 Var = 42128.29
2. First 10 = 172.461 First 25= 187.637 First 100 = 200.254
The first 100 sample mean is the closest to the population mean since it’s the
largest sample meaning a smaller sampling error
3. A) Sampling mean with 2 observations = 199.817
B) sampling mean with 500 observations = 201.472
C) Sample a does not look like normal distribution while sample b does since
sample b had 500 observations instead of 2 which results in the appearance to look
closer to a bell curve.
Q2
1. Bachelor: 55.871%
Bachelor wage: $123169.30
No Bachelor Wage: $56512.81
2.
Mean: $ 46.87 Var: 3988.56
3.
H0: μ=46
HA: μ≠46
5% significance = accept (2364.806, 2367.532)
1% significance = accept (2365.896, 2366.441)
10% significance = accept (2363.437, 2368.901)
4. H0: μ=46
HA: μ>46
5% significance = reject (2401.928, inf.)
10% significance = accept (-inf, inf)
5. H0: μ=46
HA: μ≠46
mean: 3271.242
5% significance = accept (3253.221, 3289.262)
10% significance = reject (3235.129, 3307.354)
6. Mean for bachelor wage = $5963.61
Mean for non bachelor wage = $4870.54
Difference = 1093.068
0 at the 5% significance level is 7.045621e-128 which means it is significantly
different.
7.
a. sample correlation of rent and bachelor = 0.363
sample correlation of rent to income ratio and bachelor =-.053
This means households where the head of the household has a bachelor’s
degree tends to pay more than households with a head without a bachelor’s.
b. cannot reject null hypothesis since mean is 32 (28.417, 37.171)
c. Reject the null hypothesis since mean is 45