EC295 – Economic assignment
EC295 – Economic assignment
1) Imagine you are interested in learning about the education level of teachers in schools that serve kids from different backgrounds.
a. Using the tabulate command, generate a table with the joint probability distribution between “teacher has a masters degree” and “student lives in suburb”. Describe the results [hint: you will need to add an option to this command to produce the joint probability distribution].
b. Use the tabulate command to produce the probability distribution for “teacher has a masters degree”. Then use the tabulate command again to produce the probability distribution for “teacher has a masters degree” conditional on the student living in a suburb. How does the probability that a teacher has a masters degree change when you use only students who live in a suburb? Based on this, is teacher education independent of students living in the suburbs?
2) Suppose you are interested in learning about the math scores of kindergarteners, and testing some hypotheses about the population average test score.
a. Using the summarize command, compute the mean, standard deviation, and median spring math score. Interpret each value.
b. Manually compute the t-statistic for testing the null hypothesis that the spring math score equals 51.8 against the alternative that it does not equal 51.8. Interpret the value of this statistic.
a. Using the correlate command, compute the covariance between spring math scores and class size. Next, use the generate command to create a new variable called xmathtc2 that equals spring math scores divided by 10. Compute the covariance between this new variable and class size. Compare the two covariances and explain any differences.
b. Use the correlate command to compute the correlation between spring math scores and class size. Next use the same command to compute the correlation between xmathtc2 and class size. Compare the two correlations and explain any differences.
c. Find the average spring math score at each class size by typing egen meanmath = mean(mathtc2), by(classsize). Using the twoway scatter command, draw a scatterplot between average spring math scores and class size. Based on this graph, do math scores and class size appear independent?
DETAILED ASSIGNMENT
