Find the mean standard deviation the median and the range of birth weights for children in the sample

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

Instructions

The do file to be used for this problem set is ps1 PID.do. The data file for this problem set is bwght2.dta, which will be downloaded from the web within the provided do file. First create a working directory (a folder) in your system. Save the do file therein. Rename the do file to ”ps1 yourPID”. That is, if your PID is A34567890, then your file should be named ”ps1 A34567890.do”.

You will solve this problem set by modifying the lines in this do file itself. This do file will guide you through solving this problem set. It has commented blanks for where your answers need to be written. You must update these blanks within the same do file and upload the do file. Only the final do file needs to be uploaded.

For the questions which require an answer in words, write the answer as a comment in the same do file. In Stata, all lines starting with an asterisk (*) and all lines enclosed by ”/*” and ”*/” are considered as comments. Make sure your code runs;1 if it does not run, 25% will be subtracted from your final score.

Please solve all the questions using Stata 17 which is available for download on Canvas.

Question 1

Consider the following regression model:

yi = β0 + x1iβ1 + x2iβ2 + ui ,

where x1i ∼ N (0, 1) and x2i ∼ N (0, 1) are independent of ui ∼ N (0, 2 2 ). xi1 and xi2 are correlated with correlation coefficient ρ = 0.6. We are interested in running regressions of yi on our available x variables, and want to understand how the distribution of βˆ 1 + βˆ 2 varies with the sample size.

In this problem, we generate data according to the distributions above with β0 = 1, β1 = 1, β2 = 2 and run the regression R = 5000 times for each specification and sample size

we are interested in. This will allow us to look at the distribution of the estimates. 1By “run”, we mean that the TA can click “do” in the do-file editor and the whole do-file runs through and produces the desired results. 1

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