Due 8am EST Wednesday Oct 10, 2018

Econ B2000, MA Econometrics

Kevin R Foster, CCNY

Each student should submit a separate assignment, even if it is an identical computer file to the rest of your study group. When submitting assignments, please include your name and the assignment number as part of the filename. Please write the names of your study group members at the beginning of your homework.

  1. What are the names of the people in your study group?
  2. Use the CEX data that I provided and consider the fraction spent on entertainment, ENTERTPQ/TOTEXPPQ.
  1. Find some descriptive statistics about this fraction, for some subgroups. Tell me something interesting about this data. Are there sub-categories that explain some of the variation? Make sure that you include standard errors and confidence intervals.
  2. Create a plot of these subgroups (histogram, density, try some things!). What do these reveal?
  3. Estimate a linear regression and discuss what this shows.
  4. Estimate a k-nn classification to predict which households are in the lowest 25% in terms of entertainment spending. Discuss what variables are important in classifying.
  1. Again with the CEX data; estimate some models to explain APPARPQ, expenditure on apparel in the previous quarter (includes MENBOYPQ, WOMGRLPQ, and FOOTWRPQ - expenditure on apparel for Men and boys; Women and girl; footwear). How important is educational attainment on this expenditure category?
  1. What are conditional mean expenditure on apparel for different educational levels? What about conditional means for those who spent a non-zero amount?
  2. Can you estimate some interesting OLS models and discuss the important variables in explaining apparel expenditure? Explain.
  3. Can you estimate further useful models? Explain.