“Analyzing Variation in Wages and Testing for Normality and Correlation using Gretl”

Task 1: Use the WAGE1-Unpaired test sheet 
Variance of wages reflects the measure of
variation or uncertainty. Therefore, it is of interest to analyze if the extent
of variation or uncertainty of wages is greater or lower.
The data include wages for two groups, men
and women. Using the test statistics calculator in Gretl, test the equality of variances
of wages in these two groups. Apply the critical value approach and the p-value approach. Provide the
illustration from Gretl based on the test statistic calculator.
Make sure to provide screenshots of all
windows from Gretl.
Task 2: Use the WAGE1 sheet 
In Gretl,
construct histograms for wages and log of wages. Compare with the normal
distribution using superimposed distribution, skewness, and kurtosis for wages
and log of wages. In which case does the empirical distribution (histogram) appear
closer to the normal distribution: for wages or for log of wages?
Conduct the
goodness of fit test for normality based on the five-step strategy. You may use
either the critical value approach or the p-value
approach.
Make sure to provide screenshots of all
windows from Gretl.
Hint: Use the
results from histograms for wages and log wages.
Task 3: Use the WAGE1 sheet 
Using Gretl, obtain
the correlation coefficient between wages and the variable educ. Does the sign
of correlation coefficient appear reasonable? Test the significance of the
correlation using the five-step strategy and the test statistic calculator in
Gretl. Apply the critical value approach and the p-value approach.
Make sure to provide screenshots of all
windows from Gretl.

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