Please Provide Rstudio code and markdown document.

Please Provide Rstudio code and markdown document.


Problem 3 (20 points) In this problem, you will examine whether family income affects an individual's likelihood to enroll in college by analyzing a survey of approximately 4739 high school seniors that was conducted in 1980 with a follow-up survey taken in 1986. This dataset is based on a dataset from Rouse, Cecilia Elena. Democratization or diversion? The effect of community colleges on educa- tional attainment. Journal of Business & Economic Statistics 13, no. 2 (1995): 217-224. The dataset is college .csv and it contains the following variables: « college Indicator for whether an individual attended college. (Outcome) « income Is the family income above USD 25,000 per year (Treatment) « distance distance from 4-year college (in 10s of miles). « score These are achievement tests given to high school seniors in the sample in 1980 . « fcollege Is the father a college graduate? « tuition Average state 4-year college tuition (in 1000 USD). « wage State hourly wage in manufacturing in 1980. « urban Does the family live in an urban area? Question A (5 points) Draw a DAG of the variables included in the dataset, and explain why you think arrows between variables are present or absent. | You can use any tool you want to create an image of your DAG, but make sure you embed it on your compiled .pdf file. Assuming that there are no unobserved confounders, what variables should you condition on in order to estimate the effect of the treatment on the outcome, according to the DAG you drew? Question B (5 points) Choose one among the methodologies for ATE estimation under conditional ignorability that we have covered in class to apply to this dataset. Explain why you made your choice, and discuss the assumptions that are needed to apply your method of choice to this dataset. State if and why you think these assumptions hold in this dataset. In addition, choose a method to compute variance estimates for the estimator you chose, and discuss the reasons behind your choice in the context of this dataset. Question C (10 points) Using the methodology you chose in Question B to control for the confounders you have selected in Question A, as well as the relevant R packages, provide your estimate of the ATE of the treatment on the outcome. Using your variance estimator of choice, report standard errors and 95% confidence intervals around your estimates. Interpret your results and discuss both their statistical significance and their substantive implications. Variable Description shareself proportion of self-employed potential voters shareblue proportion of blue-collar potential voters sharewhite proportion of white-collar potential voters sharedomestic proportion of domestically employed potential voters shareunemployed proportion of unemployed potential voters nvoter number of eligible voters nazivote ‘number of votes for Nazis Table 1: 1932 German Election Data.