ECON60611 (Semester1): Coursewrok
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ECON60611 (Semester1): Coursewrok
THE TASK
You are assigned a dataset from the Wooldridge package based on the last digit of your student ID number. Submitting a report for a wrong dataset results in the mark of zero for this assignment. This coursework corresponds to 20% of your final grade. The details about individual dataset and models are provided on the pages below.
Your answers have to be reported in the following table.
STUDENT ID NUMBER: (insert here)
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Question 1 |
8^ |
Interpretation |
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Question 2 |
TSS |
ESS |
RSS |
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Interpretation |
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Question 3 |
Test statistic |
Critical Value |
P-value |
Test Decision |
Interpretation |
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Question 4 |
Test statistic |
Critical Value |
P-value |
Test Decision |
Interpretation |
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Question 5 |
Test statistic |
Critical Value |
P-value |
Test Decision |
Interpretation |
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You have to submit a single pdf file which starts with the above table. Fill in your answers in the table. For all the numbers report the first 4 digits after the decimal point: 3.5678 instead of 3.6. You then have to include your R code. Hint: in RStudio go to File – Knit Document and include the generated report. The code will compile if and only if it is written without mistakes. If your code does not compile you still have to include it (just copy and paste as a text after the table).
The submission deadline for this assignment is noon UK time on December 8, 2021. The report has to be submitted in the pdf format via Turnitin on Blackboard. Please use your student ID as the file name, e.g. 12345.pdf. The assignment will be marked in accordance with the general SoSS PG Marking Criteria (available on Blackboard). Please make sure you are familiar with the University’s rules and regulations regarding plagiarism.
In general your task is to produce an empirical analysis using different tests for statistical significance.
STUDENT ID NUMBERS ENDING WITH 0 OR 1
● ID Example: 123450 or 123451.
● Use the Wooldridge dataset econmath to analyse the effect of taking a calculus course on the score in econometrics class.
● Use help(econmath) to get the variable description.
● For the regression analysis use y = score, x1 = colgpa, x2 = study, x3 = calculus.
1. Estimate a linear model of the form
yi = β0 + β1 xi1 + β2 xi2 + β3 xi3 + ui (1)
Report the estimated coefficient βˆ3 . Interpret the estimated coefficient. Insert your answers in the table.
2. Report the total sum of squares (TSS), explained sum of squares (ESS), residual sum of squares (RSS) and adjusted coefficient of determination Ra(2)dj . How do you interpret the Ra(2)dj for this model? Insert your answers in the table.
3. Conduct a test of H0 : β3 = 5 at 1% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
4. Conduct a test of H0 : β3 < 5 at 5% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
5. Conduct a test of H0 : β3 = β2 at 1% significance level by the means of an F-test. Report the appropriate test statistic with corresponding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
STUDENT ID NUMBERS ENDING WITH 2 OR 3
● ID Example: 123452 or 123453.
● Use the Wooldridge dataset affairs to analyse the effect of happiness in marriage on the number of affairs.
● Use help(affairs) to get the variable description.
● For the regression analysis use y = naffairs, x1 = age, x2 = yrsmarr, x3 = ratemarr.
1. Estimate a linear model of the form
yi = β0 + β1 xi1 + β2 xi2 + β3 xi3 + ui (2)
Report the estimated coefficient βˆ3 . Interpret the estimated coefficient. Insert your answers in the table.
2. Report the total sum of squares (TSS), explained sum of squares (ESS), residual sum of squares (RSS) and adjusted coefficient of determination Ra(2)dj . How do you interpret the Ra(2)dj for this model? Insert your answers in the table.
3. Conduct a test of H0 : β3 = 
1 at 5% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
4. Conduct a test of H0 : β3 > 
3 at 1% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
5. Conduct a test of H0 : β3 = β 1 at 5% significance level by the means of an F-test. Report the appropriate test statistic with corresponding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
STUDENT ID NUMBERS ENDING WITH 4 OR 5
● ID Example: 123454 or 123455.
● Use the Wooldridge dataset catholic to analyse effect of gender on the score in mathematics exam.
● Use help(catholic) to get the variable description.
● For the regression analysis use y = math12, x1 = lfaminc, x2 = female, x3 = fatheduc.
1. Estimate a linear model of the form
yi = β0 + β1 xi1 + β2 xi2 + β3 xi3 + ui (3)
Report the estimated coefficient βˆ2 . Interpret the estimated coefficient. Insert your answers in the table.
2. Report the total sum of squares (TSS), explained sum of squares (ESS), residual sum of squares (RSS) and adjusted coefficient of determination Ra(2)dj . How do you interpret the Ra(2)dj for this model? Insert your answers in the table.
3. Conduct a test of H0 : β2 = 1 at 5% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
4. Conduct a test of H0 : β2 > 
2 at 1% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
5. Conduct a test of H0 : β2 = β 1 at 5% significance level by the means of an F-test. Report the appropriate test statistic with corresponding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
STUDENT ID NUMBERS ENDING WITH 6 OR 7
● ID Example: 123456 or 123457.
● Use the Wooldridge dataset econmath to analyse the effect of time spent studying on the score in econometrics class.
● Use help(econmath) to get the variable description.
● For the regression analysis use y = score, x1 = colgpa, x2 = study, x3 = calculus.
1. Estimate a linear model of the form
yi = β0 + β1 xi1 + β2 xi2 + β3 xi3 + ui (4)
Report the estimated coefficient βˆ2 . Interpret the estimated coefficient. Insert your answers in the table.
2. Report the total sum of squares (TSS), explained sum of squares (ESS), residual sum of squares (RSS) and adjusted coefficient of determination Ra(2)dj . How do you interpret the Ra(2)dj for this model? Insert your answers in the table.
3. Conduct a test of H0 : β2 = 0 at 5% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
4. Conduct a test of H0 : β2 > 
1 at 1% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
5. Conduct a test of H0 : β2 = β 1 at 5% significance level by the means of an F-test. Report the appropriate test statistic with corresponding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
STUDENT ID NUMBERS ENDING WITH 8 OR 9
● ID Example: 123458 or 123459.
● Use the Wooldridge dataset affairs to analyse the effect of age on the number of affairs.
● Use help(affairs) to get the variable description.
● For the regression analysis use y = naffairs, x1 = age, x2 = yrsmarr, x3 = ratemarr.
1. Estimate a linear model of the form
yi = β0 + β1 xi1 + β2 xi2 + β3 xi3 + ui (5)
Report the estimated coefficient βˆ1 . Interpret the estimated coefficient. Insert your answers in the table.
2. Report the total sum of squares (TSS), explained sum of squares (ESS), residual sum of squares (RSS) and adjusted coefficient of determination Ra(2)dj . How do you interpret the Ra(2)dj for this model? Insert your answers in the table.
3. Conduct a test of H0 : β 1 = 
1 at 1% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
4. Conduct a test of H0 : β 1 < 
1 at 5% significance level. Report the appropriate test statistic with cor- responding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
5. Conduct a test of H0 : β 1 = β2 at 1% significance level by the means of an F-test. Report the appropriate test statistic with corresponding critical value and the p-value. What is the test decision? Give an economic interpretation of the test decision. Insert your answers in the table.
2021-12-03