PLUG INTO STATA AND PASTE SCREENSHOTS OF MODEL AND WORK SHOWN IN STATA:

clear all use https://bigblue.depaul.edu/jlee141/econdata/cps_data/cepr_march_2018.dta keep if perno == 1 keep if hrwage > 0 | hrwage < 100 keep if age >= 25 & age <= 35 keep if phipval > 0 set seed 1998910 gen select = rnormal(0,1) sort select keep if _n <= 1000

1. We are interested in the relationship between annual health insurance premiums paid with yearly income from wage and salary using the following models.

Model 1 : Y i=b 0+b 1 Xi +ei

Model 2: Y i=b 0+b 1 logXi +ei

Model 3: log Y i=b 0+b 1 Xi +ei

Model 4: logY i=b 0+b 1 log X i+ ei

whereYi = the annual health insurance premiums (phipval)

Xi = the annual income from wage and salary (incp_wag)