USING RSTUDIO

wage.txt: WAGE EXPER EDUC 3.354 14 12 1.3889 5 12 4.5455 15 12 1.0965 6 12 4.5918 7 14 4.7421 33 12 8.3333 11 16 7.8431 35 12 2.1262 24 12 4.6875 21 12 4.063 15 12 4.5918 14 11 2.0833 0 12 2.2668 14 12 3.6797 6 10 1.3472 9 11 3.2143 20 12 5.175 6 12 2 23 12 7.5529 9 12 3.5052 5 16 3.5714 11 12 3.25 18 13 3.25 15 12 2.1545 4 12 3.7879 21 17 4 31 12 4.7269 9 12 7.2559 7 17 5.8671 7 12 1.5385 32 11 2.459 11 16 5.8511 16 13 3.5714 14 12 3.8068 27 16 2.4638 0 11 2.3753 17 12 4.5351 28 10 5.6183 24 14 14.631 11 17 2.6786 1 12 3.9194 14 12 2.5729 6 16 4.5375 10 12 2 6 12 3.4722 4 12 2.0161 10 16 4.5716 22 12 2.2727 16 12 2.6375 6 12 2.2899 12 12 1.0989 32 12 1.1765 15 12 1.6 17 8 1.8762 34 10 4.0437 9 16 9.6354 37 14 8.0409 10 17 4.599 35 14 2.1429 6 12 4.4 19 14 3.5354 10 12 2.7174 11 8 6.25 15 12 11.933 12 12 3.5931 12 8 6.9444 14 17 2.9167 11 12 3.0769 9 12 3.75 24 12 5.7259 12 12 3.6757 13 12 5.1648 29 9 8.2237 11 10 4.3365 13 12 4.9819 19 12 0.3571 2 12 2.9674 24 17 1 9 15 2.5554 6 12 0.8602 22 6 1 30 14 2.9261 10 12 3.5461 6 14 1.6264 29 9 8.3333 29 17 3.0952 36 13 2.7 19 9 5.2521 8 15 1.4154 13 12 4.7986 16 12 1.6667 11 12 1.1217 15 12 0.5 6 12 0.7143 13 12 2.7961 22 12 4.8583 24 12 1.7435 2 13 2.4631 6 12 2.4213 2 13 1.5345 2 12 2.8818 14 12 2.4069 9 12 5.2326 11 16 3.75 9 12 1.3889 6 13 4 19 11 3.2313 26 12 3.4014 19 12 1.3333 3 12 9.3023 7 17 4.5 28 14 4.6235 13 16 3.9557 9 17 5.814 15 12 0.5 20 11 4.0816 29 12 6 9 12 3.6667 1 17 3.8613 8 10 2.7629 19 13 2.931 23 11 4.3884 3 12 5.4167 13 16 9.8611 8 17 0.1616 17 12 0.3826 4 16 3.6364 15 12 2.3747 11 16 4.6667 7 8 1.8519 0 12 5.2 0 12 3.2986 10 12 8.5333 8 13 2.0635 2 11 2.5641 4 12 2.1875 6 12 6.25 18 14 3.3333 3 12 4.4444 22 12 6.6335 33 12 8.4224 28 17 4.3956 23 14 2.4457 27 12 1.2245 11 9 1.625 6 12 3 11 12 4.7269 14 12 1.1293 17 14 7.4024 17 16 4.4595 14 17 2.4725 11 15 1.8824 7 12 4 8 16 8.19 6 17 7.0968 8 17 1.6667 4 12 3.445 25 16 4.2347 24 13 2.7778 11 12 1.8892 19 11 5.0352 9 16 1.25 19 14 2.8571 14 16 4.1167 22 12 1.7778 6 9 13.554 23 17 4.5627 15 14 2.1277 6 12 2.9891 11 12 2.5654 2 11 5.6122 22 12 2.8054 10 12 1.607 14 10 2.25 12 12 2.0325 9 5 5.532 13 17 1.5845 18 11 3.7879 8 12 3 11 12 8.6538 9 14 4.2105 9 11 4.6875 14 12 4.0984 9 14 25 2 12 2.6331 12 10 6 15 16 5.4126 11 13 0.6642 7 12 1.25 9 12 2.2754 19 12 3.4615 11 11 4.1667 8 12 4.4687 13 9 1.75 4 13 3.6694 7 12 6.5826 19 12 2.6 14 12 4.8651 14 13 5.787 3 16 4.5408 9 12 9.5057 7 16 10.638 7 17 1.1111 14 12 4.0541 29 12 2.6871 19 9 2.9762 14 12 3.1728 16 12 3.55 10 13 17.907 12 12 3.4174 24 12 3.3333 6 12 3.886 9 12 2.3111 14 10 1.7108 26 12 2.1143 7 16 9.9331 4 12 3.0277 15 11 1.8605 23 12 0.1282 1 10 6.6327 29 12 5.6391 9 12 1.599 6 12 2.6667 11 12 7.9208 17 16 5.3398 6 17 4 7 12 6.0449 2 17 6.25 24 12 2.9762 4 12 4.2339 11 12 3.4916 25 8 4.9645 11 12 2.7692 2 13 3.6585 19 12 5.3935 7 12 0.6564 2 8 4.7688 20 12 8.5551 10 17 10.459 19 17 2.6375 17 12 6.8493 12 13 5.0872 11 12 0.9615 6 12 4.3066 10 12 7.0667 4 12 2.5253 2 9 7.8947 13 10 4.1489 21 12 8.1746 9 16 9.5971 4 13 2.0164 2 8 7.6218 19 16 3.1975 4 13 1.6 9 12 4.0984 14 11 1.4815 6 13 3.6364 24 12 1 1 12 2.6042 13 10 1.75 3 12 4.8 10 17 5.53 16 15 4.0984 9 16 1.25 19 10 1.6667 4 11 3.7901 10 12 2.3636 5 12 10.204 7 14 6.8182 3 16 7.2146 38 14 2.4484 16 8 1.1987 13 7 1.641 1 12 1.7821 7 12 2.9412 15 14 4.9689 10 12 1.8605 2 12 8.0357 19 12 3.9716 25 14 3.0416 25 16 2.907 7 12 3.0612 15 12 4.8966 11 12 4.0161 25 13 5.5556 19 13 1.2227 4 10 2.6839 14 12 2.6738 19 12 9.3294 18 12 3.1381 14 12 0.5426 11 14 8.6111 4 17 3.6687 29 10 2.3185 21 9 2.882 24 12 3.1666 19 12 3.6458 31 16 6.25 28 12 10.249 15 17 3.2096 27 12 7.6522 13 17 1.9724 4 11 4.698 10 16 2.1234 8 11 2.3333 4 13 2.3896 18 11 1.2564 3 8 1.0938 11 11 3.75 8 12 3.3072 10 10 5.1352 33 17 6.6327 19 12 4.5645 35 12 11.848 21 17 3.75 7 14 4.3651 18 12 3.9333 4 12 3.3333 12 12 3.3159 16 12 3.5616 14 12 1.6 3 12 2.2255 1 9 4.7872 27 10 5.8065 12 12 2.3585 6 12 2 9 12 1.9 2 12 5.123 6 12 5.4945 9 17 6.3218 16 12 7.1429 22 17 2.375 26 12 2.5429 11 10 2.1798 11 12 2.6 15 12 3.7294 13 12 4.375 6 12 4.4433 20 12 4.2877 17 12 1.6667 8 16 3.2558 13 13 5.4113 15 13 2.205 14 12 4.0625 14 16 0.6482 6 17 5.3826 24 12 0.1709 10 14 23.467 2 12 9.5785 9 17 3.6948 23 12 2.2222 12 14 1.749 8 12 1.1594 16 12 6.9901 10 17 3.9683 7 16 21.429 19 16 0.4762 2 12 2.1505 9 9 1.8578 14 12 4.3295 9 12 8.9286 16 16 2.7778 7 14 2.6565 6 12 2.5 22 12 18.267 9 11 0.819 9 12 2 14 16 15.385 17 17 6.4775 12 17 8.3333 13 14 4.5503 8 12 2.4958 10 14 4.4797 16 12 2.2324 1 10 2.071 6 12 1.676 4 13 3.4091 8 16 2.5 4 12 3.9609 15 7 6.2275 7 16 3.9286 14 14 2.9 16 12 4.0816 15 10 2.85 23 12 7.0153 19 16 2.9388 4 10 1.9231 12 12 6.875 12 14 3.9002 25 12 2 14 6 4.9763 14 15 1.2019 11 12 22.5 7 17 6.8677 18 14 3.5613 4 13 1.9792 37 6 5.3713 13 16 1.7442 14 14 5.0948 17 15 2.5 5 14 3.825 2 8 1 0 14 3.0717 3 12 1.7163 21 12 4.0209 20 12 5.4585 19 12 25 4 12 2.3897 19 12 3.2134 11 8 3.377 14 12 1.7778 8 17 3.1633 13 12 2.7027 24 12 1.6927 1 14 0.2137 1 13 6.7669 3 17 1.7407 4 8 2.5 21 12 4.4859 10 11 2.572 13 12 3.46 9 12 4.7826 14 17 2.3118 2 10 5.3061 21 12 5.8675 22 13 3.4091 14 12 4.0816 7 12

3. Use the data from wage.txt to complete the following: (a) Consider the following model: Use OLS to estimate and As. Report the HC standard errors of these estimates. (b) Use S:-1 WAGE, I(EDUC, = x) and your estimates from part (a) to fill in the following table: 4 7 9 10 ? 11 ? 12? 13? (HINT: (x) is just the sample mean of the WAGE observations where EDUC is equal to x.) (c) Create a plot containing each of the following as functions of a: i. Bn,1 +B,,12 (use a black line for this) 11, (z) (use a red line for this). HINT: Let your vertical axis span from 0 to 8.) (d) Consider a second model Letting Y-WAGE,, Xi = (1, EDUC.) and wi = (1, EDUC, EXPER.), compare the following: VS iV. (HINT: XXi is a 2 x 2 matrix, while w, wi s a 3 x 3 matrix.) 3. Use the data from wage.txt to complete the following: (a) Consider the following model: Use OLS to estimate and As. Report the HC standard errors of these estimates. (b) Use S:-1 WAGE, I(EDUC, = x) and your estimates from part (a) to fill in the following table: 4 7 9 10 ? 11 ? 12? 13? (HINT: (x) is just the sample mean of the WAGE observations where EDUC is equal to x.) (c) Create a plot containing each of the following as functions of a: i. Bn,1 +B,,12 (use a black line for this) 11, (z) (use a red line for this). HINT: Let your vertical axis span from 0 to 8.) (d) Consider a second model Letting Y-WAGE,, Xi = (1, EDUC.) and wi = (1, EDUC, EXPER.), compare the following: VS iV. (HINT: XXi is a 2 x 2 matrix, while w, wi s a 3 x 3 matrix.)