Skills

Economics

R

Programing

Statistics

Recent Posts

Introduction This post is related to the following two questions: How should you add dummy variables? How should you interpret the results? It may be easier for us to understand theses questions if an example is used. So let’s create one. We will generate our own data. Wait, you may say why not use a real world example. The reason is that when data is collected from the real world, it’s hard (some time impossible) to know the true data-generating process.

CONTINUE READING

Question Is your name related to how much you get paid? How much more is person AAA paid compared to ZZZ? Hypothesis Salary is NOT correlated with the alphabetical order of one’s last name. That is professor ABCs get paid similar to professor XYZs. Male and femamle professors are paid the same for the same job. Key findings The correlation between the alphabetical order of one’s last name and his/her salary is positive and significant.

CONTINUE READING

Tags