Concept explainers
The economic return to earning an MBA. What are the economic rewards (e.g., higher salary) to obtaining an MBA degree? This was the question of interest in an article published in the International Economic Review (August 2008). The researchers made inferences based on wage data collected for a sample of 3,244 individuals who sat for the Graduate Management Admissions Test (GMAT). (The GMAT exam is required for entrance into most MBA programs.) The following sampling scheme was employed. All those who took the GMAT exam in any of four selected time periods were mailed a questionnaire. Those who responded to the questionnaire were then sent three follow-up surveys (one survey every 3 months). The final sample of 3,244 represents only those individuals who responded to all four surveys. (For example, about 5,600 took the GMAT in one time period; of these, only about 800 responded to all four surveys.)
- a. For this study, describe the population of interest.
- b. What method was used to collect the sample data?
- c. Do you think the final sample is representative of the population? Why or why not? Comment on potential biases in the sample.
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- States (and provinces) that have control over taxation sometimes reduce taxes in an attempt to spur economic growth. Suppose that you are hired by a state to estimate the effect of corporate tax rates on, say, the growth in per capita gross state product (GSP).(i) What kind of data would you need to collect to undertake a statistical analysis?(ii) Is it feasible to do a controlled experiment? What would be required?(iii) Is a correlation analysis between GSP growth and tax rates likely to be convincing? Explain.arrow_forwardWe are interested in analysing the effect of the lockout laws introduced in some areas of the Sydney CBD and nearby surrounds on the number of alcohol-related violent incidents. Suppose we have two samples of data on the number of violent incidents in a number of local areas of the Sydney CBD and nearby surrounds. Pubs, hotels and clubs located in a subset of these areas became subject to the lockout laws when they were introduced in 2014. The first sample is from 2010 before the introduction of the lockout laws, and the second is from 2015 after the introduction of the law. The hypothesis we wish to test is that the introduction of the lockout laws reduces violent incidents in the areas in which the lockout laws were put in place. We use a difference-in-difference model on the pooled data from 2010 and 2015. We find the following results: viol_inc hat = 33.21 (5.29) + 12.43lockout (7.01) – 4.19Yr2015 (2.98) – 3.32 (lockout x Yr2015) (1.85) N = 181, R^2 = 0.128 Where: viol_incis the…arrow_forwardAs the Country Director of a multi-national company in Ghana, you have decided to conduct a survey to determine the perception of Ghanaians about a new alcoholic beverage you have introduced into the market. Identify, justify your choice, and explain any three (3) sampling techniques that can be employed for such a survey. Discuss how you will use each technique to select sampling elements for the study. Clearly explain how you will collect the data.arrow_forward
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- A researcher wants to study the behaviours of postgraduate students in Australia in mobile phone usage. One of the goals of the study is to find out the first app the students open every morning. The researcher collected a random sample of 1250 postgraduate students from 3 big universities in Sydney and asked them to fill in a questionnaire. Are the data collected by the researcher considered as primary or secondary data? Explainarrow_forwardWe have a random sample of workers from a large firm. In 2017, the firm ran a training program. Some workers did the training program, others did not. The firm now wants to assess the effect of the training on earnings. We use the following model to estimate the effect of a training program on annual earnings in 2018: ln(earn2018)=β0+β1train+β2ln(earn2016)+β3educ+β4exper+u where earn2018 = individual total annual earnings in 2018 in dollars train = a dummy variable that takes the value 1 if the individual worker did the training in 2017 and 0 otherwise earn2016 = individual total annual earnings in 2016 in dollars educ = the individual's years of education exper = the individual's years of experience Now, I want to test whether the effect of an additional year of education increases earnings by twice as much as an additional year of experience. My null hypothesis is H0:β3=2β4. To get the standard error I need to conduct this hypothesis test, I rearrange or re-parameterise…arrow_forwardWe have a random sample of workers from a large firm. In 2017, the firm ran a training program. Some workers did the training program, others did not. The firm now wants to assess the effect of the training on earnings. We use the following model to estimate the effect of a training program on annual earnings in 2018: ln(earn2018)=β0+β1train+β2ln(earn2016)+β3educ+β4exper+u where earn2018 = individual total annual earnings in 2018 in dollars train = a dummy variable that takes the value 1 if the individual worker did the training in 2017 and 0 otherwise earn2016 = individual total annual earnings in 2016 in dollars educ = the individual's years of education exper = the individual's years of experience We find: ln(earn2018)^= 11.672 + 0.041train + 0.821ln(earn2016) + 0.037educ + 0.012exper (5.864) (0.019) (0.258) (0.013) (0.007) n=1278, R2= 0.048 Which of the following is the correct interpretation of the…arrow_forward
- QUESTION TWORecently, the government of the republic of Zambia conducted a 2022 Census of Population and Housing. From the summary results, Zamstats indicated that the 2022 Zambian population is 19,610,769. Assume that 35% of the population are not in the labour force. Suppose also that from those in the labour force, 40% are employed. Determine the total number of people who are;a) not in the labour force.b) in the labour force.c) employed.d) unemployed.arrow_forward7. A television station wishes to study the relationship between viewership of its 11 p.m. news program and viewer age (18 years or less, 19 to 35, 36 to 54, 55 or older). A sample of 250 television viewers in each age group is randomly selected, and the number who watch the station’s 11 p.m. news is found for each sample. The results are given in the table below.arrow_forwardIn a study aimed at creating reference values, abdominal circumference (measured in cm) was measured in adult men. It was found that the relationship to age could be described as abdominal circumference = 82 + 0.3 x age a) What is the analysis that produces such a formula called? b) At what age is the average abdominal circumference 100 cm?arrow_forward
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