please help to answer d,e,f (the regression used should be the
1st regression after it has been shorten into appropriate
degree)
Please Help To Answer D E F The Regression Used Should Be The 1st Regression After It Has Been Shorten Into Appropriate 1 (609.53 KiB) Viewed 40 times
You believe that the relationship between earnings and age is nonlinear. You estimate the following three polynomial regression models, controlling for the effect of gender by using a binary variable that takes on the value of one for females and is zero otherwise: Earn = 795.90 + 82.93 xAge-1.69 ×Age² +0.015 xAge³ +0.0005 ×Age¹ -163.19 ×Female (283.11) (29.29) (1.06) (0.016) (0.0009) (12.45) Earn=-683.21 + 65.83 xAge-1.05 xAge² +0.005 ×Age³-163.23 ×Female (120.13) (9.27) (0.22) (0.002) (12.45) Earn = 344.88 + 41.48 xAge-0.45 xAge² -163.81 xFemale (51.58) (2.64) (0.03) (12.47)
d) (4 points) Suppose that you decide to choose the quadratic regression above. Sketch the graph of fitted earnings of males against age. Does this make sense? e) (2 points) Are you concerned about the negative coefficient on the regression intercept in all the three polynomial regressions? f) (2 points) Suppose that we only consider the quadratic regression. Someone concerns the nonlinearity of not only the age variable, but also the female variable. Thus, in the quadratic regression, she adds the square term of female. That is, she is running the following regression: Earni = Bo + B₁Age + B₂Age² +B3Female; + B4Female? + u¡ Is there anything wrong with this model specification?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!