Statistics and Econometrics – Regression Model – Statistics Assignment Help

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Statistics Assignment Help
Task:
What we are looking for in the assignments is a demonstration that you can understand the econometrics and statistics questions and can use R to solve them. That means effective programming to get correct results is needed, but at the same time, clear explanations of economics/business concepts in well presented reports are equally important when assessing your work. In particular, you will be marked for successful (correct) programming (not the style of coding), good understanding of related concepts, and clear interpretations and explanations of results.
Only two forms of reports will be accepted, either pdf or html. We strongly suggest you to submit the pdf or html converted from R markdown/notebook after you program in R. The source code is not required, but if you feel the code can help justify your answer, present it clearly in the report.

Question 1

The data set ceosal2.RData contains information on chief executive officers for U.S. corporations. Two variables of interest are the annual compensation (
salary
) and the prior number of years as company CEO (
ceoten
).

Find the average salary and the average tenure in the sample.

How many CEOs are in their first year as CEO (that is,
ceoten
= 0)? What is the longest tenure as a 
CEO?

What is the average salary for CEOs with tenure longer than or equal to the average tenure? What is the average salary for CEOs with tenure shorter than the average tenure?

Create a graph to examine the relationship between
salary
and
ceoten
for all CEOs. Comment.

Question 2
The data set bwght.RData contains data on births to women in the United States. Two variables of interest are the infant birth weight in ounces (
bwght
), and the average number of cigarettes the mother smoked per day during pregnancy (
cigs
).
1. Estimate the simple regression model “
bwght
=
?
0
+
?
1
cigs
+
u”, 
and report your results.

2. What is the predicted birth weight when
cigs
= 0? What about when
cigs
= 20 (one pack per day)?  
Comment on the difference.
3. Does this simple regression necessarily capture a causal relationship between the child’s birth weight
and the mother’s smoking habits? Explain.
4. To predict a birth weight of 125 ounces, what would
cigs
have to be? Comment.
5. The proportion of women in the sample who do not smoke while pregnant is about 85%. Does this
reconcile your finding from part 4?
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