6SSMN961: APPLIED ECONOMETRICS

2024-25

Problem Set 1

Stata practice

1.   Download the data set auto.dta from the course page. This data set contains data on 74 cars sold in the US in 1978 and various of their attributes.

a.   Create a do file to run all the commands needed for this problem set. In that do file, create an output file to save your results.

b.   Use the tabulate command to see whether foreign cars have a better repair record than domestic cars (a higher number is better here).

c.   Create a new variable, the log of price. Create a label describing this variable.

d.   Draw a scatterplot of price versus weight. Describe in words what you  see. Calculate the correlation coefficient between the two variables.

e.   Create a new dataset with the mean price, weight, and length of domestic and foreign cars. Search on the internet how you can create a dataset of means in Stata and use the Stata help function to find out how to use this command. How do the two types of cars compare in these characteristics?

f.   Convert the output file into a pdf and open this document to view your Stata output.