Question: Looking at a large CPS data set with over 60,000 observations for the United States and the year 2004, you find that the average number of years of education is approximately 13.6. However, a surprising large number of individuals (approximately 800) have quite a low value for this variable, namely 6 years or less. You decide to drop these observations, since none of your relatives or friends have that few years of education. In addition, you are concerned that if these individuals cannot report the years of education correctly, then the observations on other variables, such as average hourly earnings, can also not be trusted. As a matter of fact you have found several of these to be below minimum wages in your state. Discuss if dropping the observations is reasonable.

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