Answer Happy

The question is about econometircs using the STATA
program.

I cannot upload the data file for the STATA program to
directly solve the question, so I would like to know the
approximate method of solving it.
(The third picture is part of the data, not full data)
4. You are given a data file CPS04. It contains data for full-time, full-year workers, age 25-34, with a high school diploma or B.A/B.S as their highest degree. In this exercise you will investigate the relationship between a worker's age and earnings. Use the CPS04 to answer the following questions. 2 (a) Run a regression of average hourly earnings (AHE) on age (AGE). Remeber to use the "robust" option to obtain the heteroskedasticity-robust standard error. What is the estimates of 3o (intercept) and 3₁ (slope)? (b) Run a regression of AHE on Age, gender (Female), and education (Bachelor). What is the estimated effect of Age on earnings? Report a 95% confidence interval for the coefficient on Age in the regression. (c) For the regression in (b), test the null hypothesis that the coefficient on education (Bachelor) is equal to 7. (d) Are the results from the regression in (b) substantially different from the result in (a) regarding the effects of Age on AHE? (e) Bob is 26-year-old worker with a high school diploma. Predict Bob's earnings using the estimated regression in (b). Alexis is a 30-year-old female worker with a college degree. Predict Alexis's earnings using the regression in (b). (f) Are gender and education determinants of earnings? Test the null hypothesis that coefficients on Female and Bachelor are both zero. (g) The regression in (a) will suffer from omitted variable bias when two conditions hold. Suppose the omitted variables are Female and Bachelor. What are these conditions? Do these conditions seem to hold here?
Documentation for CPS04 Data Each month the Bureau of Labor Statistics in the U.S. Department of Labor conducts the "Current Population Survey" (CPS), which provides data on labor force characteristics of the population, including the level of employment, unemployment, and earnings. Approximately 65,000 randomly selected U.S. households are surveyed each month. The sample is chosen by randomly selecting addresses from a database comprised of addresses from the most recent decennial census augmented with data on new housing units constructed after the last census. The exact random sampling scheme is rather complicated (first small geographical areas are randomly selected, then housing units within these areas randomly selected); details can be found in the Handbook of Labor Statistics and is described on the Bureau of Labor Statistics website (www.bls.gov). The survey conducted each March is more detailed than in other months and asks questions about earnings during the previous year. The file CPS04 contains the data for 2004 (from the March 2005 survey). These data are for full-time workers, defined as workers employed more than 35 hours per week for at least 48 weeks in the previous year. Data are provided for workers whose highest educational achievement is (1) a high school diploma, and (2) a bachelor's degree. Series in Data Set: FEMALE: 1 if female; 0 if male YEAR: Year AHE : Average Hourly Earnings BACHELOR: 1 if worker has a bachelor's degree; 0 if worker has a high school degree
A 1 ahe 2 34.6154 3 19.2308 4 13.7363 5 19.2308 6 19.2308 7 38.4615 8 33.6539 9 9.61539 10 8 11 19.2308 12 9.13462 13 19.2308 14 23.0769 15 13.4615 16 15.3846 17 9.61539 18 26.1539 19 17.4419 20 8.41346 21 8.125 22 26.4423 23 6.22172 24 13.9423 25 5.76923 26 48.0769 B bachelor 1 1 0 1 1 1 1 0 0 0 0 1 1 0 1 0 1 1 0 0 1 0 1 0 1 с female 0 1 1 1 0 1 0 0 1 0 1 1 1 0 1 1 0 1 1 0 0 1 1 0 0 age O 30 30 30 30 25 32 33 32 30 30 27 32 31 26 33 33 29 28 31 34 29 30 27 29 33