BUEC 488 Assignment 2March 4, 2024The second assignment is to conduct some analyses related to our lectures by using cross-sectiondata. The deadline is before 23:59 on March 22. Still, you can discuss them with your classmates.Question 1, Chapter 07Use the same hotels-vienna dataset that we used for the case study. Analyze the pattern of associationbetween hotel price and average customer rating and stars, respectively. First, visualize the data andsummarize the most important findings. Then, move on to estimate a simple linear regression as ifcustomer rating (or stars) were a quantitative variable and interpret its coefficients. (3 scores)Question 2, Chapter 07Analyze the pattern of association between how easy it is to do business in a country and how muchincome the country generates. Download data from the World Bank on GDP per capita in PPP (y)and the time required to start a business (x) for a recent year. Visualize the data and summarize itsmain findings. Then estimate a simple linear regression and interpret its results. Do you think theresults show the effect of the business-friendliness of a country on how much income it generates? (1.5scores)Question 3, Chapter 08Ro-do the hotel price VS. distance to the city center regression analysis in a log-log specification.How do you interpret the coefficients of the simple linear regression? Then estimate correspondingregressions allowing for a piecewise linear spline in the explanatory variable, then a quadratic. Comparethe five best deals from these specifications (linear, linear spline, quadratic, cubic). What do youconclude from this analysis? (1.5 scores)Question 4, Chapter 09Replicate the case study of patterns of earnings by gender and age using data on employees in thesame occupation in another country. For a different country find and use survey data on earnings,hours, and occupations that represent the population of interest. If possible, pick an occupation closeto market research analysts and marketing specialists. Carry out the analysis and compare your resultsto what we found for the USA in 2014. (2 scores)Question 6, Chapter 10Re-do the case study on the gender difference in earnings by age - using a different group of employeesor a different year in the USA, a different educational group, or a different country. Compare yourresults to those in the text and try to explain what you see. (2 scores)