Let’s investigate the relationship between age (AGE) and income (INCOME) for a random sample of people between the ages of 25

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

Complete the following long-answer questions and submit them to the UM Learn Dropbox Assignment 5 – Part B.

Let’s investigate the relationship between age (AGE) and income (INCOME) for a random sample of people between the ages of 25 and 65 who have a bachelor's degree but no higher degree. (NOTE: Age is recorded at the end of his last birthday.) 

Create a title page that includes your student number.

Give some reasons why older people in this population might earn more than younger people. Give some reasons that younger people might earn more than older people.

Import Assignment1.gtd into gretl and create a scatterplot INCOME (y-axis) versus AGE (x-axis). Include a copy of the scatterplot with a properly labelled x- and y-axis label. Describe the pattern in two or three sentences.

Use gretl to regress INCOME by AGE. Include a copy of the regression output and provide a one or two-sentence interpretation for the slope of the population regression line.

Report the 95% confidence interval for the slope of the population regression line. Describe what this interval tells you in terms of change in INCOME for every one year increase in AGE.

Use the regression line to predict the income for a 25-year-old and a 50-year-old.

Your 75-year-old grandfather has a bachelor's degree. Should the population regression line be used to predict his income? 

Examine the Normality of the residuals using a histogram and a plot of the residuals versus each AGE. Include a copy of the histogram and the plot with properly labelled x- and y-axis labels. Summarize your conclusions in two or three sentences.

ECON 3040 extends the 'Inference for Regression' to include multiple explanatory variables. List two explanatory variables other than AGE that impact INCOME. 

Save Part B as a pdf document and upload to the UM Learn Dropbox Assignment 5 – Part B.

[Note: The pdf you submit should include all of Assignment 5 - Part B. The pdf will have multiple pages, with the first being a title page.]

Related Questions

. The fundamental operations of create, read, update, and delete (CRUD) in either Python or Java

CS 340 Milestone One Guidelines and Rubric  Overview: For this assignment, you will implement the fundamental operations of create, read, update,

. Develop a program to emulate a purchase transaction at a retail store. This  program will have two classes, a LineItem class and a Transaction class

Retail Transaction Programming Project  Project Requirements:  Develop a program to emulate a purchase transaction at a retail store. This

. The following program contains five errors. Identify the errors and fix them

7COM1028   Secure Systems Programming   Referral Coursework: Secure

. Accepts the following from a user: Item Name Item Quantity Item Price Allows the user to create a file to store the sales receipt contents

Create a GUI program that:Accepts the following from a user:Item NameItem QuantityItem PriceAllows the user to create a file to store the sales receip

. The final project will encompass developing a web service using a software stack and implementing an industry-standard interface. Regardless of whether you choose to pursue application development goals as a pure developer or as a software engineer

CS 340 Final Project Guidelines and Rubric  Overview The final project will encompass developing a web service using a software stack and impleme