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\noindent {\large BOSTON\ COLLEGE} \\
Department of Economics \\ 
EC 228 01 Econometric Methods \\
Prof.\ Baum, Mr.\ Lim, Fall 2013
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\noindent Problem Set 1

\noindent Due at classtime, Wednesday 18 September 2013

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Problem sets should be your own work. You may work together with classmates,
but if you're not figuring this out on your own, you will eventually regret
it. You may find it useful to review Wooldridge  (5th ed.) Appendices A,B, C\ before attempting these problems. You should be familiar with this material from EC\ 151.
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\begin{enumerate}
\item Appendix A, problem A.7
\item Appendix A, problem A.10
\item Appendix B, problem B.2
\item Appendix B, problem B.4
\item Appendix C, problem C.1
\item Appendix C, problem C.6
\end{enumerate}

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\noindent 7. You must use Stata from {\tt http://apps.bc.edu} to do the following problem, which makes use
of the Wooldridge dataset {\tt wage1}. To load it into Stata, give the command {\tt bcuse wage1}. If 
you are using a personal copy of Stata, you must {\tt sec install bcuse} once, and then that command will be accessible. 

{\bf Hand in a printout from Stata, annotated with your comments.}
(It would be easiest if you would create a single do-file which answers all the questions
and produces a single printout). The `log' icon in the Stata toolbar may be used to create a file containing both your commands and Stata's  response. Use the `Viewer' within Stata to examine and print the log.

The {\tt wage} variable is measured in dollars and cents.

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\begin{enumerate}[(a)]
\item How many females are there in this dataset?
\item What is the average wage earned by a female?
\item What is the median wage earned by a female?
\item How many nonwhites are there in this dataset?
\item How much more or less do nonwhites earn, on average, than whites?
%\item Is the difference between average white and nonwhite wages statistically significant?
\end{enumerate}

Hints: within Stata, {\tt help tab, help summarize} %, help ttest}
 
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You must use Stata to do the following problem, but will not make use of the 
RAW files listed in the text, as all of these data are available in Stata format over
the Internet. Please consult the ``Wooldridge datasets: descriptions and access commands" link on the course home page. All you need to do is copy the ``use http://fmwww..'' line from each dataset to be used into Stata's command window. The name of each dataset is that given in the text, without the .RAW extension; e.g. WAGE.RAW is referred to as 
just {\tt wage} (with no period nor extension). Remember: Stata is case sensitive.

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%For each of the empirical problems, h
{\bf Hand in a printout from Stata, annotated with your comments.}
(It would be easiest if you would create a single do-file which answers all the questions
and produces a single printout). The "log" icon in the Stata toolbar may be used to create a file containing both your commands and Stata's 
response. %It may be easier to work with a text-format log; the command 'log using ps2.log' will create a  text log. 
Use the 'Viewer' within Stata to examine and print the log.

%\medskip ~~~~~~~~~~~~~~(over)

\begin{enumerate}
\item Chapter 1, problem C1.1
%\item problem C1.2, using dataset {\tt bwght50} rather than {\tt bwght}
%\item problem C1.3, using dataset {\tt meap01\_40} rather than {\tt meap01}
%\item problem C1.4
\end{enumerate}

