[go: up one dir, main page]
Scribd
Upload
18 views2 pages

Tutorial 1 - Chapter 2

The document outlines three questions related to statistical analysis using different datasets. Question 1 investigates the relationship between sleep and work hours, while Question 2 focuses on the correlation between IQ and monthly salary. Question 3 examines CEO salaries in relation to their tenure, requiring regression analysis for interpretation of results.

Uploaded by

Hàn Hy Trần
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
18 views2 pages

Tutorial 1 - Chapter 2

The document outlines three questions related to statistical analysis using different datasets. Question 1 investigates the relationship between sleep and work hours, while Question 2 focuses on the correlation between IQ and monthly salary. Question 3 examines CEO salaries in relation to their tenure, requiring regression analysis for interpretation of results.

Uploaded by

Hàn Hy Trần
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Chapter 2

Question 1

Use the data in SLEEP75 from Biddle and Hamermesh (1990) to study whether there is a
tradeoff between the time spent sleeping per week and the time spent in paid work. We
could use either variable as the dependent variable. For concreteness, estimate the model
sleep=β 0 + β 1 totwrk +uwhere sleep is minutes spent sleeping at night per week and totwrk
is total minutes worked during the week.

(i) Report your results in equation form along with the number of observations and R2.
What does the intercept in this equation mean?

(ii) If totwrk increases by 2 hours, by how much is sleep estimated to fall? Do you find this
to be a large effect?

Question 2
Use the data in WAGE2.RAW to estimate a simple regression explaining monthly salary
(wage) in terms of IQ score (IQ).

i. Find the average salary and average IQ in the sample. What is the sample standard
deviation of IQ? (IQ scores are standardized so that the average in the population is
100 with a standard deviation equal to 15.)
ii. Estimate a simple regression model where a one-point increase in IQ changes wage
by a constant dollar amount. Use this model to find the predicted increase in wage for
an increase in IQ of 15 points. Does IQ explain most of the variation in wage?
iii. Now, estimate a model where each one-point increase in IQ has the same percentage
effect on wage. If IQ increases by 15 points, what is the approximate percentage
increase in predicted wage?

Question 3
The data set in CEOSAL2 contains information on chief executive officers for U.S.
corporations. The variable salary is annual compensation, in thousands of dollars, and
ceoten is prior number of years as company CEO.
(i) Find the average salary and the average tenure in the sample.
(ii) How many CEOs are in their first year as CEO (that is, ceoten = 0)? What is the
longest tenure as a CEO?
(iii) Estimate the simple regression model
log ⁡(salary )=β 0 + β 1 ceoten+u and report your results in the usual form. What is the
(approximate) predicted percentage
increase in salary given one more year as a CEO?

You might also like