Exercise session 2
Course: Introductory Econometrics
Lecturer: Dmytro Vikhrov
Date: September 23, 2014.
Problem 1
Use wage1.gdt for this exercise. First, do the tests by hand, then use GRETL built-in
calculator (Tools− >Test statistic calculator) to confirm your results.
1. Obtain descriptive statistics on female wages and interpret it.
2. Setup one-sided and two-sided tests that the average wage equals some arbitrary
constant. Do formal testing at 5% significance level. Interpret your results.
3. Construct 95% confidence interval for the average female wage. Provide intuition
for your result.
Problem 2
Repeat the above exercise for the variance of female wages.
Problem 3
Perform a two-way test for the equality of male and female mean wages. Re-do the
test for the equality of variances. Provide intuition.