Data analysis assignment 1 (mandatory)

Receive a grade

The first data-analysis assignment is a mandatory part of the course and covers content from the first two lectures.

Instructions

Do a regression analysis with a statistical software of your choice using the Prestige dataset used in the class. Your task is to answer the research question: "How do the other variables in the dataset explain income?" You should first explain income itself and then, if you see it necessary, to explain the logarithm of income. The part about logarithm transformation in Wooldridge's book is worth reading when doing this assignment.

Document your thought process: how did you explore the data, how you checked the assumptions, and how the model evolved. The submitted report should be prepared according to instructions provided in the section Instructions for submitting computer assignments.

You can load the data in the following ways.

Stata:

use https://stats.idre.ucla.edu/stat/stata/examples/ara/prestige, clear

R:

install.packages("car”)
library(car)
data("Prestige")

SPSS:

Download the data from https://stats.idre.ucla.edu/stat/stata/examples/ara/prestige.dta and open it using the File menu in SPSS.

The dataset is from

Fox, J. (1997). Applied Regression Analysis, Linear Models, and Related Methods. Thousand Oaks, Calif: SAGE Publications, Inc.

http://socserv.socsci.mcmaster.ca/jfox/Books/Applied-Regression/

See the description of the Prestige dataset.