Economic Statistics Excel Data Project
Instructions: The second part of the data project deals with Statistical Inference and Hypothesis Testing, as such, it completes your analysis from the first part. Answer the following questions based on the information contained in the dataset: classData.xls. This dataset is attached. Microsoft Excel will be necessary to complete your project, however, you could use any other type of statistical software. The data source is the National Longitudinal Survey of Youth (NLSY 79) from the Bureau of Labor Statistics.
You have to complete and prepare a written report based on the following questions:
1. Construct a 95% confidence interval for the population mean of earnings.
2. Construct a 99% confidence interval for the population mean of earnings of earnings. Were you expecting a wider interval than the one you computed in 1? Why?
3. You believe that there is an average earnings differential between Whites (i.e., Non-Black, Non-Hispanic) and Non-Whites (i.e., a subsample of Blacks plus Hispanics) in your sample. You are required to clearly state and test the relevant hypotheses. Provide a conclusion from your test.
4. Do married individuals seem to be earning more on average than those never married? In project 1 you justified your answer by comparing the magnitudes of average yearly earnings by marital status (excluding those classified as other from the analysis). Here, you are required to formally state and test the relevant hypotheses. Provide a conclusion from your test.
5. In the sample, do males seem to be earning more on average than females? Again, this was done in your first project but here you are required to formally state and test the relevant hypotheses. Provide a conclusion from your test.
6. Generate two sub-samples, one comprised of individuals with no college education (i.e., those withysch 12TH GRADE) and the second comprised of individuals with at least some college education (i.e., those with ysch >1st YEAR COLLEGE). Calculate a college earnings gap by comparing average earnings between these two subsamples (college educated – non college educated). Is the average college gap from your sample statistically significant? State and test the relevant hypotheses, and provide a conclusion from your test.
Expectations about the written report:
In addition to an appropriate and accurate display of the data analysis, I expect that you present your answers and conclusions in an attractive, well-organized, and well-written manner.