Begin by describing your dataset, where it came from, and your choice of variables and why you chose them. Then, investigate the distributions and correlations of the variables you chose and describe what you find. Include any graphs or correlations tables in your written report. Next, perform both a simple and multiple linear regression with your choice of dependent, independent, and control variables (for the multiple regression). Report on what you find, and include regression tables in your report. Interpret the meaning of all coefficients. (Hint: you might find Chapter 4, Section 6 on reporting regression results useful, both for this part and the next.) Perform any relevant hypothesis tests, and report and discuss their results. Be sure to choose the right type of test(s) (i.e one vs. two-sided vs. joint) and explain your choice(s). Wrap up your report on a discussion of the results and your conclusions. Discuss any issues that you might have to further consider if you were to do more extended research on the topic, such as the potential presence of heteroskedasticity or omitted variable bias, for example. Upload both a written report of your findings in PDF format as well as a supporting DO file. I should be able to run your DO file with no errors and achieve the same results as in your report. Bonus (up to +10 pts.): Test for whether your models’ errors exhibit heteroskedasticity. If you do so, report on your findings before the discussion portion of your report.
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