Y = In(wage) X= educ Y = 853.8392 X=6608 ERI Y2 = 1534.34 X2 = 87040 XY = 11059.64 n = 526 a. Write down a model (not an

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Y In Wage X Educ Y 853 8392 X 6608 Eri Y2 1534 34 X2 87040 Xy 11059 64 N 526 A Write Down A Model Not An 1 (369.51 KiB) Viewed 22 times

Y = In(wage) X= educ Y = 853.8392 X=6608 ERI Y2 = 1534.34 X2 = 87040 XY = 11059.64 n = 526 a. Write down a model (not an estimated equation) that implies percentage changes (or relative changes) in wage due to changes years of education. Indicate which parameter measures the relative change in worker's Wage b. Use the summarized data provided above to estimate the model: In(wage) = Be + B, educ + u where: wage is the hourly worker's wage, and educ is the number of years of education completed by the worker. Explain in words what the estimated equation in b. represents. Provide an interpretation for each coefficient Calculate the estimated effect on a worker's wage of 5 additional years of education e. Calculate the standard error for each coefficient estimate f. Calculate the coefficient of determination R-Squared, and provide an interpretation for it g. With a 5% significance leve, is there a significant evidence that the number of years of education has a significant impact on worker's wage? (state clearly what are the relevant null and alternative hypotheses, and explain also what are the implications you draw from your conclusion) h. Provide a 95% interval estimate for the slope and for the intercept coefficients.