Answer each with approximately 200-250 words (each part), depending on how much information is being requested. One question only requires a chart.

a) Explain, in words, a key question that you could use regression analysis to answer in your own occupation or industry. Be clear about what your dependent variable would be in this investigation, what your treatment variable would be (if exists), and provide a discussion about control variables that you would have to incorporate. If any are dummy or categorical dummy variables, make this clear.

b) Are there any variables that would be useful in such an investigation but are not possible to obtain or not appropriate to obtain? Are there appropriate “proxy” variables that might be a “second best” option (like SAT scores used for ability)? Are there any places where you should consider a nonlinearity? Explain your yes or no answer as to why a nonlinearity is/is not warranted.

c) Explain what variables would require a one-tailed test and what variables would require a two-tailed test. Be sure you are offering intuition.

d) Create a chart with 4 columns and headings as follows to explain your model (no discussion needed):

Variable Name
Note that variable names should be long enough to be descriptive. For example, Educ or Exp is better than “E” which could stand for multiple things.
Don’t forget to include your dependent variable.
Variable Definitions
Variable definitions are craft in relation to what constitutes a subject. For example, “Number of Years of Experience for employee i.”
Expected sign (could be Positive, Negative, or No Expectation)
Relevant hypothesis test given your expectation of sign (craft a statement of Ho and Ha).
When you write out your hypotheses, remember that you are predicting the sign of the coefficient ().
Don’t forget to think about whether a one-tailed or two-tailed test is warranted.
e) Explain the data set you would need to create and be sure to identify what type of data set it is (refer back to discussion of cross-sectional, time series, etc.). Make it clear what constitutes a subject (hence an observation in your investigation). Also explain what would be involved in collecting such a data set if you chose to pursue this.

Additional Instructions:

ASSIGNMENT MUST BE TYPED AND SUBMITTED AS A WORD FILE. You are expected to be detailed and thorough. Quality of your answers as well as quality of writing will determine your grade.

Cut and paste each question above into your assignment and answer it below, for ease of grading.