Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use dataset k401ksubs from wooldridge package for this problem. After loading the dataset, type ?k401ksubs in console to familiarize yourself with the dataset. This dataset

Use dataset k401ksubs from wooldridge package for this problem. After loading the dataset, type ?k401ksubs in console to familiarize yourself with the dataset. This dataset contains information on net financial wealth (nettfa), age of the survey respondent (age), annual family income (inc), family size (fsize), and participation in 401k retirement plans.

f. Estimate the effects of income, age, gender, marital status, and 401k eligibility on net total financial assets using a linear regression model. Include quadratic terms for income and age.

g. Use modelsummary() to display your results in the required format.

h. Interpret the coefficient on 401k eligibility indicator.

i. Interpret the coefficient on marital status indicator.

j. Interpret the coefficient on gender indicator.

k. Now calculate a simple difference in means of net total financial assets between men and women in the whole sample.

l. Compare the results from the answer K above with the coefficient on gender indicator you got in your linear regression model.

m. Estimate a linear probability model explaining the 401k eligibility in terms of income, age, and gender. Include income and age in quadratic form.

n. Report the results in the usual format using modelsummary().

o. Would you say that 401k eligibility is independent of income and age? What about gender? Explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee , W.H.C. Bassetti

11th Edition

1138069418,1351631438

More Books

Students also viewed these Finance questions