You are working at a multinational company and your line manager asked you to collect data from a survey on health, education, work experience, and gender. In addition, she is asking for information about the daily activity level of a person: total number of steps a person takes in a day. The original question is: "On how many days in the last month did you accomplish 10K steps per day?" i. Write an equation that would allow you to estimate the effects of daily 10K steps on health, while controlling for other factors. [6 points] You should be able to make statements such as, Fulfilling 10K steps per day five more times per week is estimated to change the health condition by z%." [6 points) ii. Write a model that would allow you to test whether daily activity has different effects on wages for men and women. How would you test that there are no differences in the effects of daily activity for men and women? iii. Suppose you think it is better to measure daily activity by putting people into one of four categories: nonwalker, light walker (1 to 5 times per month), moderate walker (10 to 20 times per month), and heavy walker (more than 25 times per month). Now, write a model that allows you to estimate the effects of daily activity level on health. [6 points) iv. Using the model in part (ii), explain in detail how to test the null hypothesis that daily activity has no effect on health. Be very specific and include a careful listing of degrees of freedom. [6 points] v. What are some potential problems with drawing causal inference using the survey data that you collected? [6 points] You are working at a multinational company and your line manager asked you to collect data from a survey on health, education, work experience, and gender. In addition, she is asking for information about the daily activity level of a person: total number of steps a person takes in a day. The original question is: "On how many days in the last month did you accomplish 10K steps per day?" i. Write an equation that would allow you to estimate the effects of daily 10K steps on health, while controlling for other factors. [6 points] You should be able to make statements such as, Fulfilling 10K steps per day five more times per week is estimated to change the health condition by z%." [6 points) ii. Write a model that would allow you to test whether daily activity has different effects on wages for men and women. How would you test that there are no differences in the effects of daily activity for men and women? iii. Suppose you think it is better to measure daily activity by putting people into one of four categories: nonwalker, light walker (1 to 5 times per month), moderate walker (10 to 20 times per month), and heavy walker (more than 25 times per month). Now, write a model that allows you to estimate the effects of daily activity level on health. [6 points) iv. Using the model in part (ii), explain in detail how to test the null hypothesis that daily activity has no effect on health. Be very specific and include a careful listing of degrees of freedom. [6 points] v. What are some potential problems with drawing causal inference using the survey data that you collected? [6 points]
