Econ4400 Data sampling and data types discussion Answer questions and show specific steps. Answer questions and show specific steps. Answer questions and s

Econ4400 Data sampling and data types discussion Answer questions and show specific steps. Answer questions and show specific steps. Answer questions and show specific steps. Answer questions and show specific steps. Answer questions and show specific steps. Answer questions and show specific steps. In groups of 4-5 students, discuss and answer the following questions:
The following is a description of the data collection of the Current Population Survey:
“The CPS is administered by the Census Bureau using a probability selected sample of about 60,000 occupied
households. The fieldwork is conducted during the calendar week that includes the 19th of the month. The
questions refer to activities during the prior week; that is, the week that includes the 12th of the month.
Households from all 50 states and the District of Columbia are in the survey for 4 consecutive months, out for
8, and then return for another 4 months before leaving the sample permanently. This design ensures a high
degree of continuity from one month to the next (as well as over the year). The 4-8-4 sampling scheme has the
added benefit of allowing the constant replenishment of the sample without excessive burden to respondents.”
1.
What type of data is this?
2.
How would this data set look like? Draw table for 2012. Use only two variables: wage, employment
status. You will also need an ID for the household and time variable to identify month. Recall: In a
panel data set, you need two IDs to uniquely identify the observation.
3.
Suppose I only have the March 2012 survey. Then what type of data do I have?
The Current Population Survey (CPS), sponsored jointly by the U.S. Census Bureau and the U.S. Bureau of
Labor Statistics (BLS), is the primary source of labor force statistics for the population of the United States. The
CPS is the source of numerous high-profile economic statistics, including the national unemployment rate, and
provides data on a wide range of issues relating to employment and earnings. The CPS also collects extensive
demographic data that complement and enhance our understanding of labor market conditions in the nation
overall, among many different population groups, in the states and in substate areas.”
4.
What are some possible economic questions that this data could be used to answer?
5.
Think of another social or economic question that you find interesting. What type of data would be
ideal to answer this question? What variables would be needed?
Data Sampling
Each student should have 1 die to roll. Follow the directions carefully. Each student
will begin by creating their own data set of dice rolls, but first we want to think about
our expectations.
1. When we measure real world data, we rarely know what the true population looks
like, but in this case we do. If I let X be a random variable where each X is a
roll of a fair die, what is E[X]?
2. Create your data set below:
Roll Number Outcome
1
2
3
4
5
3. In your sample, what is the estimated E[X] = X̄?
4. Calculate the Sample Variance (σ 2 =
√
σ 2 ).
P
(X−X̄)
)
n−1
and Standard Deviation (σ =
5. Use a t-distribution to find a confidence interval for your estimated E[x].
6. Use a t-test and your results to test if the true E[X]=1.
Regression Lines
Econ 4400
Suppose we are given the following data on a sample of individuals:
Table 1: Wage Data
Wage
14
16
12
22
24
Education
12
14
10
20
22
1. Use the graph below to create a scatter plot of the data. (Use wage as the y-axis)
2. Draw a line that matches these points.
3. Write an equation for the line in terms of wages and education and parameters β
and error term u .
25
20
15
10
5
5
10
15
20
25
4. Identify the slope of the line. Write the interpretation of the slope in terms of
wages and education.
5. Write down equation for the line in terms of wages and education and estimated
parameters β̂.
6. Calculate predicted values of wage
ˆ and û for each educi .
7. Examine the graph and the values of wage
ˆ and û. What do you notice about the
residual for each obs. of educi ? What can you say about education’s ability to
predict wage?
8. What is R2 and SER?

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