Refer to the table of estimated regressions on page 228, com-puted using data for 2015 from the Current Population Surve

[answerhappygod]

Refer to the table of estimated regressions on page 228, com-puted using data for 2015 from the Current Population Survey which consists of information on 7178 full-time, full-year workers. The highest educational achieve-ment for each worker was either a high school diploma or a bachelor’s degree. The workers’ ages ranged from 25 to 34 years. The data set also contains information on the region of the country where the person lived, marital status, and number of chil-dren. For the purposes of these exercises, let
AHE = average hourly earnings
College = binary variable (1 if college, 0 if high school)
Female = binary variable (1 if female, 0 if male)
Age = (in years)
Northeast = binary variable (1 if Region = Northeast, 0 otherwise) Midwest = binary variable (1 if Region = Midwest, 0 otherwise) South = binary variable (1 if Region = South, 0 otherwise)
West = binary variable (1 if Region = West, 0 otherwise)
Results of Regressions of Average Hourly Earnings on Sex and Education Binary Variables and Other Characteristics Using 2015 Data from the Current Population Survey
Dependent variable: average hourly earnings (AHE). Regressor
College 1X12
Female 1X22
Age 1X32
Northeast 1X42
Midwest 1X52
South 1X62
Intercept
Summary Statistics and Joint Tests
F-statistic testing regional effects = 0 SER
R2 n
(1)
10.47 (0.29)
-4.69 (0.29)
(2)
10.44 (0.29)
-4.56 (0.29)
0.61 (0.05)
0.11 (1.46)
12.03 0.182
(3)
10.42 (0.29)
-4.57 (0.29)
0.61 (0.05)
0.74 (0.47)
-1.54 (0.40)
-0.44 (0.37)
0.33 (1.47)
9.32
12.01 0.185
18.15 (0.19)
12.15 0.165
7178
7178
7178
Using the regression results in column (1):
a. Is the college–high school earnings difference estimated from this regression statistically significant at the 5% level? Construct a 95% confidence interval of the difference.
b. Is the male–female earnings difference estimated from this regression statistically significant at the 5% level? Construct a 95% confidence interval for the difference.
Using the regression results in column (3):
a. Do there appear to be important regional differences? Use an appropri- ate hypothesis test to explain your answer.
b. Juanita is a 28-year-old female college graduate from the South. Molly is a 28-year-old female college graduate from the West. Jennifer is a 28-year-old female college graduate from the Midwest.
i. Construct a 95% confidence interval for the difference in expected earnings between Juanita and Molly.
ii. Explain how you would construct a 95% confidence interval for the difference in expected earnings between Juanita and Jennifer. (Hint: What would happen if you included West and excluded Midwest from the regression?)