Econometric Project Essay Example | Topics and Well Written Essays - 2000 words

Econometric Project - Essay Example will use in-depth statistical analysis processes to create models relating the different observations, particularly that between gross weekly earnings (grmain1) and other observations such as age, sex, race, years of education and number of years in employment, among others. Correlation analysis will also be used to investigate the strength of the relationship observed between the dependent variable (gross weekly earnings) and other independent variables. A residual plot will be used to confirm the presence or absence of outliers, the plot will also indicate whether there were any particular areas where the model greatly under or over-predicted the relationship between unemployed persons and persons seeking employment. From the results, it is observed that othe sample consists of 7227 respondents. The mean income is obtained as 10.3 and this corresponds to an income category of  £300-350 per week. The standard deviation is obtained as 4.5 and this corresponds to an income category of  £100-125 per week. This implies that on average, the respondents’ salaries differ from the average earning by this amount. The STATA output shown indicates that the greatest proportion of respondents (20.23%) earn over  £600 per week followed by those that earn  £300 - 350 and  £250-300 with 9.5% and 9.2% respectively. Apart from persosn that do not earn anything, the income category of  £50-75 has the least number of respondents. It is observed that out of the 7227 respondents, 47% were male while the remaining 53% were female. These percentages correspond to 3398 and 3829 persons respectively. Observing these percentages, it is seen that both sexes made up approximately 50% of the sample. Further analysis of the data on sex in later sections of the paper will give further findings. The greatest proportion of respondents have â€Å"white british† ethnicity followed by â€Å"any other white background†. The two ethnicities account for almost 95% of all persons surveyed. This