I would like to minimum get the grade 7 or C
- You are allowed to use external sources (e.g., lecture notes, textbook) with proper citations but you are not allowed to consult
anyone outside your group.
- The grade for this assignment will constitute 50% of the final grade.
Hence, I encourage you to be very detailed and clear in your answers (e.g., provide the excel formulas you have used; provide explanations for each step of your work).
- You need to hand in both the excel file containing your solutions and a separate document explaining your answers.
The file “[url removed, login to view]” includes data on 30 individuals employed in 1979. For each individual, you have information on their hourly wage (in dollars), gender (1 = man, 0 = woman), marital status (1 = married, 0 = not), number of years of education obtained, and number of years of experience in the labor market (i.e., the number of years the person has been working until 1979).
Question 1 [10pts]
What type of variable is “hourly wage”? Calculate its mean, variance, standard deviation, and median. What are the 25th and the 75th percentiles?
Question 2 [10pts]
Construct a 95% confidence interval for the population mean of hourly wage. What sample size would you need if you wanted the confidence interval to have a width of at most $1 on either side of the sample mean (so $2 in total)?
Question 3 [10pts]
Conduct a hypothesis test at 1% significance to test the null hypothesis that the average hourly wage in the population is greater than $5. What is the p-value for this hypothesis test?
Question 4 [10pts]
Using the critical value approach, conduct a hypothesis test at 10% significance to test the null hypothesis that the average hourly wage of men is equal to the average hourly wage of women.
Question 5 [10pts]
Conduct a Chi-square test to check if the variables “gender” and “marital status” are independent.
Appendix is attached