Perform a Regression of EARNINGS on S where EARNINGS Represents Current Hourly Earnings – Management Assignment Help

Assignment Task:

Task:

1. Discuss the nature, causes, consequences and remedies of each of the following problems we might encounter in regression analysis.

1. Muticollinearity
2. Hetroscedasticity
3. Autocorrelation
4. Use the data file wage to work on using STATA and answer the following questions

1. Examine the data
2. Carry out remedial measure(s) if there is any problem with data
3. Regress HRS on RATE, ERSP, ERNO, NEIN, AGE and DEP
4. Conduct model specification tests using linktest and ovtest commands of STATA, and interpret the result
5. Perform multicollinearity test
6. Perform hetroscedasticity test
7. Comment on the explanatory power and adequacy of the model
8. Interpret the regression coefficients

6. Use the data file EARNINGS and, using STATA for analysis, carry out the following tasks.

1. Perform a regression of EARNINGS on S where EARNINGS represents Current hourly earnings in $ and S represents education (highest grade completed) in number of years of schooling of the respondent. Interpret the regression results
2. Comment on the value of R²
3. Perform a test on the coefficients of regression. Explain the implications of the result of the test. Calculate a 95% confidence interval for the slope coefficient
4. Perform an F test for the goodness of fit and comment on the result
5. Regress S on ASVAC and SM where ASVAC is a composite measure of numerical and verbal ability of the respondent and SM is the years of schooling of the respondent’s mother. Repeat the regression using SF, the years of schooling of the father, instead of SM, and again including both as regressors. Do your regression result support the view that if you educate a male, you educate an individual, while if you educate a female, you educate a nation?
6. Regress EARNINGS on S and EXP (total out-of-school work experience in years), interpret the results and perform t tests