Question 1 (Each Item 10 points: 50 Points) Suppose you are given a dataset which consists of 100 observations ({Y.XI) p

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Question 1 Each Item 10 Points 50 Points Suppose You Are Given A Dataset Which Consists Of 100 Observations Y Xi P 1 (42.38 KiB) Viewed 47 times

Question 1 (Each Item 10 points: 50 Points) Suppose you are given a dataset which consists of 100 observations ({Y.XI) pairs). You run a simple regression and found the table below. Note: The values inside paranthesis (below coefficients) indicates the standard erorts of coefficients. Table 1: OLS Results Dependent variable: Y 70.89 (9.49) Constant X 3.57 (0.46) Observations R? Residual Std. Error 100 0.38 26.39 (df98) (a) Interpret the OLS coefficients. (b) Suppose that the years of education and Y = daily wages in Turkish lira. Are coefficients econom ically meaningful? (e) are intercept and slope statistically significant? Hint: if > 1.96, we can argue that the coefficients are statistically significant at 95% confidence level. (d) is large or small? Explainting the Rº formula (e) Assume that you are not confident about the standard error of the coefficients because of potential heteroseedasticity problem. I. Define the beterscedasticity, it How would you solve this problem? Activate