**Problem Set #1**

Sonoma State University Economics 317-Introduction to Econometrics |
Dr. Cuellar |

Computer assignments:

C1.1

In addition to the problems in the text using the Wage1 data set, answer the
following:

(vi) Graph the distribution of hourly wages. Describe your graph. Graph the distribution of education. Describe your graph.

(vii) Graph the distribution of hourly wages by gender. Describe your graph. Graph the distribution of education by gender. Describe your graph.

(viii) What is the average wage differential between men and women?

(ix) Set up a one sided hypothesis test on the difference between male and female
wages.

(x) Using a confidence level of 1%, what is the critical t-statistic? Show graphically.

(xi) Using a confidence level of 1%, what is the critical wage difference? Show graphically.

(xii) Is the sample wage differential statistically significant? Explain.

C1.2, C1.3, C1.4.