Instructions: Use the textbook to guide you and answer the questions "Introductory Econometrics: A Modern Approach" (7th Edition), by Jeffrey M. Wooldridge. Code every problem and solve using R studio. QUESTION 1

1. Upload your .do (or R) file with fully commented out code. Put all into one file, making note of each problem number within the file. You only need to include the homework problems in your .do file that required coding.
2. Attach File

QUESTION 2

1. ch2. C1. (i). The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm.

Find the average participation rate in the sample of plans

QUESTION 3

1. ch2. C1. (i). The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm.

Find the average match rate in the sample of plans.

QUESTION 4

1. ch2. C1. (ii). The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm.

what is the intercept value in a simple regression usingmrateas the independent valriable:

prate=₀+₁mrate

QUESTION 5

1. ch2. C1. (ii). The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm.

what is the coefficient formratein the same equation;prate=₀+₁mrate

QUESTION 6

1. ch2. C1. (ii). The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm.

Indicate the R²value in the same equation estimation;prate=₀+₁mrate

QUESTION 7

1. Ch2.C1.(iv)The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm

Find the predicted prate when mrate is 3.5.(prate=₀+₁mrate)

QUESTION 8

Ch2.C1.(iv)The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm

(prate=₀+₁mrate)

do you think the prediction when mrate is 3.5. is reasonable?

QUESTION 9

1. Ch2.C1.(v). The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm

How much of the variation inprateis explained bymrate? (prate=₀+₁mrate)

QUESTION 10

1. Ch2.C1.(v). The data in 401K are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the per-centage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker's plan for each $1 contribution by the worker. For example, if mrate50.50, then a $1 contribution by the worker is matched by a 50 contribution by the firm

How much of the variation inprateis explained bymrate(prate=₀+₁mrate)

Is the variation inprateexplained bymrate a lot in your opinion? (answer "yes" or "no")

QUESTION 11

1. Ch2.C3.(i). Use the data in SLEEP75 from Biddle and Hamermesh (1990) to study whether there is a tradeoffbetween the time spent sleeping per week and the time spent in paid work. We could use either variableas the dependent variable. For concreteness, estimate the model:

sleep=₀+₁totwrk+u,where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked during the week.

what is the intercept value

QUESTION 12

1. Ch2.C3.(i). Use the data in SLEEP75 from Biddle and Hamermesh (1990) to study whether there is a tradeoffbetween the time spent sleeping per week and the time spent in paid work. We could use either variableas the dependent variable. For concreteness, estimate the model:

sleep=₀+₁totwrk+u,where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked during the week.

what is the coeffeicient value fortotwrk (ignore the sign, just indicate the value)

QUESTION 13

1. Ch2.C3.(i). Use the data in SLEEP75 from Biddle and Hamermesh (1990) to study whether there is a tradeoffbetween the time spent sleeping per week and the time spent in paid work. We could use either variableas the dependent variable. For concreteness, estimate the model:

sleep=₀+₁totwrk+u,where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked during the week.

what is the R²value

QUESTION 14

1. Ch2.C3.(ii). Use the data in SLEEP75 from Biddle and Hamermesh (1990) to study whether there is a tradeoffbetween the time spent sleeping per week and the time spent in paid work. We could use either variableas the dependent variable. For concreteness, estimate the model:

sleep=₀+₁totwrk+u,where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked during the week.

Iftotwrkincreases by 2 hours, by how much issleepestimated to fall? (answer unit is in minutes)

QUESTION 15

1. Ch2.C3.(ii). Use the data in SLEEP75 from Biddle and Hamermesh (1990) to study whether there is a tradeoffbetween the time spent sleeping per week and the time spent in paid work. We could use either variableas the dependent variable. For concreteness, estimate the model:

sleep=₀+₁totwrk+u,where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked during the week.

Is this whentotwrkincreases by 2 hours alarge effect?

True

False

QUESTION 16

1. Ch2.C5.(i). For the population of firms in the chemical industry, let rd denote annual expenditures on research and development, and let sales denote annual sales (both are in millions of dollars).

choose a model (not an estimated equation) that implies a constant elasticity betweenrdandsales

	I.	log(rd)=0+1log(sales)+u
	II.	rd=0+1sales+u
	III.	log(rd)=0+1sales+u
	IV.	rd=0+1log(sales)+u

QUESTION 17

1. Ch2.C5.(i). For the population of firms in the chemical industry, let rd denote annual expenditures on research and development, and let sales denote annual sales (both are in millions of dollars).

Which parameter is the elasticity in the model that implies constant elasticity between rd and sales?

	I.	0
	II.	1
	III.	0 and 1
	IV.	log(sales)

QUESTION 18

1. Ch2.C5.(ii). For the population of firms in the chemical industry, let rd denote annual expenditures on research and development, and let sales denote annual sales (both are in millions of dollars).

Estimate the model that implies constant elasticity between rd and sales using the data in RDCHEM.What is the estimated elasticity ofrdwith respect tosales?

ANS:

QUESTION 19

Ch2.C5.(ii). For the population of firms in the chemical industry, let rd denote annual expenditures on research and development, and let sales denote annual sales (both are in millions of dollars).

Estimate the model that implies constant elasticity between rd and sales using the data in RDCHEM.\

A ( Blank 1 )percent increase in sales is estimated to increase rd by about (Blank 2) %

QUESTION 20

1. Ch2.C7.(i) Use the data in CHARITY [obtained from Franses and Paap (2001)] to answer the following questions:

What is the average gift in the sample of 4,268 people (in Dutch guilders)?