(i) First use the data set 401KSUBS.RAW, keeping only observations with fsize = 1. Find the skewness...
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(ii) Next use BWGHT2.RAW. Find the skewness measures for bwght and log(bwght). What do you conclude?
(iii) Evaluate the following statement: "The logarithmic transformation always makes a positive variable look more normally distributed."
(iv) If we are interested in the normality assumption in the context of regression, should we be evaluating the unconditional distributions of y and Iog(y)? Explain.
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Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge
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