From the set research question (How do job and marriage affect life satisfaction?), list at least two hypotheses which you can test with the provided data. You can number your chosen hypotheses so that you can easily refer back to them. You should focus on one or two important factors for which you can make hypotheses and predictions about, and then include other factors as a set of controls. You need to set up any prior expectations in your hypotheses. Following each of your hypotheses, you should clearly justify what you are doing. Although a formal literature review is not required, do make reference to any literature, economic theory and other sources you used to develop your resulting hypotheses.
Data
You should discuss the dependent variable and your chosen key explanatory variables (e.g., what your dependent and independent variables are, and why you have selected them). You should provide relevant descriptive statistics (which may include graphics if you wish) of your dependent and independent variables (such as means, standard deviations, max, min) as this may aid your interpretation (especially if results are unexpected). Demonstrate your understanding of the data and variables through the use of descriptive statistics.
Methodology
Choose one or more estimation method (estimator) from four methods: pooled OLS, random effects, fixed effects, and ordered probit model or random effect ordered probit model. Discuss why you are using this/these estimation method (e.g. do tests for fixed versus random effects), how the estimator can be used to test your hypotheses, and how your chosen variables are measured. You should use regression equations to demonstrate the specification of your population model (i.e. include variables in your regression specification)
Reference should be made to any literature which helped make these decisions.
It is important to demonstrate your understanding of the estimators (estimation methods) applied and justify their use. I expect to see the specification of your population model(s) and the application of the estimator. You should provide enough information about the chosen methods so that the reader could replicate your analysis.
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