Use the cps09mar.csv dataset to estimate the effect of education on earnings. Data description

and variable definitions can be found in the document cps09mar description.pdf. For all

questions below, use the sub-sample of non-Hispanic women at least 23 years old.

Research Questions

1. (20 points) Load this dataset in R (2 points). Create a new variable

wage = earnings/(hours week).

Obtain summary statistics (mean, standard deviation, 25, 50 (median), and 75 percentiles)

for wage and education (5 points). Plot histograms for these two variables to explore

their distributions. Make your histograms reader-friendly; that is, give informative ti

tles and variable names instead of just using the default titles and variable names (6

points). For example, you could use Years of Schooling in place of education. Create

a new variable ln(wage) 1 and draw a scatter plot of ln(wage) versus education (5 points).

Comment on the correlation between these two variables (2 points)