1.Use the attached table to identify the data set you have been assigned
2.Use economic theory to form an hypothesis regarding the relationship between two variables found in your data set
3.Specify and estimate a regression that will allows you to test your hypothesis
using observations from your data set. Explain choice of dependent and RHS variables. Define all variables.
4.Carry out diagnostic tests on your estimated equation based on potential CLR
5.Test your hypothesis
6.Report results of estimation and tests
. Results should include estimated regression, any diagnostics tests, hypothesis tests and descriptive statistics of regression variables.
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