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Use R to answer the questions of statistics and probability, the data is here: https://drive.google.com/file/d/1wiJGkqgLXBJMyFviI9tuBX4gfAzZ7OlV/view?usp=sharing Holzer, Block, Cheatham, and Knott (1993) study the effect ofjob

Use R to answer the questions of statistics and probability, the data is here:

https://drive.google.com/file/d/1wiJGkqgLXBJMyFviI9tuBX4gfAzZ7OlV/view?usp=sharing

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Holzer, Block, Cheatham, and Knott (1993) study the effect ofjob training on firm productivity. You can check the paper but do no expect to replicate their results. In the le manufacturing.csv, you have a panel data of rms, information on whether they received a grant or not, and the scrap rate. That is, the percentage of failed products in the assembly line, which will be our proxy for quality. You will need to first clean the data. You will only work with two periods, 1987 and 1988. Since the program started in 1988, no firm had received a grant in 1987. Moreover, many rms do not report scrap rates, you will have to select only the rms that do so. The relevant columns in the data set is - fcode: a code for each firm. Different firms have different number codes. 0 year: the year of the data 0 scrap: the scrap rate, i.e. the percentage of products that are so poor in quality that they need to be discarded 0 grant: the indicator/dummy variable to denote whether the firm has received a grant that year. How many firms report scrap rates both in 1987 and 1988? Compute the mean of the scrap rate for treated firms and for non-treated firms in 1987 and 1988, where "treated" here means "receiving a grant". (Part of what is tested here is what treatment translates to in this context and what the model should be. ) (Enter numerical answer accurate to at least 2 decimal places). Mean Treated 1987: Mean Treated 1988: Mean Control 1987: Mean Control 1988: Correction note (Sept 7 1600UTC): A typo in the problem statement "for non-treated firms in 1987 and 1998" was fixed to for "non-treated firms in 1987 and 1988". Correction note (Sept 7 1600UTC): Note on intent "Part of what is being test ..." is added.Combine the results above to find the diff-in-diff estimator of the effect of receiving a grant.(Enter a numerical answer accurate to at least 2 decimal places). DID Estimator:Consider the linear model: scrapit = Po + BiTreated; + 2I (t = 1988) + 3 Treated; X I (t = 1988) + Eit where Treated is the indicator/dummy variable that takes values 1 for receiving a grant and 0 otherwise, and I (t = 1988) is the indicator/dummy variable that takes value 1 ift = 1988 and 0 ift = 1987. Which coefficient captures the diff-in-diff estimate? O Bo O BI O B 2 OP3 - B2 O B3 O A combination of B1 and B3 (Run the regression to verify your answer.)

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