Empirical Economics Assignment: Confidence intervals
1. Using the data on hourly wages of high school graduates and persons with bachelor's degree, construct a 99% confidence interval for the mean hourly wage of high school graduates and mean wage of bachelor degree holders. Show your work! Are hourly wages for the two groups equal? Is there positive return to higher education? Briefly comment on your results.
2. Use the data on household size and total expenditures in Ontario to calculate and report the poverty rate in ON in 2009.
In 2009 the basic poverty lines (low-income cut-offs - LICOs) were defined as follows:
|
Number of persons in a household
|
Poverty line
|
|
1
|
18,421
|
|
2
|
22,420
|
|
3
|
27,918
|
|
4
|
34,829
|
|
5
|
39,660
|
|
6 and more
|
43,984
|
Attachment:- Assignment Files.zip