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1. You use a random sample of 1,002 individuals and estimate the following OLS model wage, = 10.6 + 1.2 * Schooling Where wage is measured in dollars per hour and schooling is measured in the number of years of education. You have also calculated TSS = 8,000 and SER = 2.00. a. If a person increases the number of years of schooling by 4 years, what is the predicted effect on their wage? b. The sample average for wage is $25/hour. What is the sample average for years of schooling? c. The sample covariance for wage and schooling is 2.15. What is the sample standard deviation for years of schooling? d. What is the R2? e. If the education variable is in months of schooling rather than years (assume a year of schooling is 12 months), what are R^2, SER and B1.?

1. You use a random sample of 1,002 individuals and estimate the following OLS model wage, = 10.6 + 1.2 * Schooling Where wage is measured in dollars per hour and schooling is measured in the number of years of education. You have also calculated TSS = 8,000 and SER = 2.00. a. If a person increases the number of years of schooling by 4 years, what is the predicted effect on their wage? b. The sample average for wage is $25/hour. What is the sample average for years of schooling? c. The sample covariance for wage and schooling is 2.15. What is the sample standard deviation for years of schooling? d. What is the R2? e. If the education variable is in months of schooling rather than years (assume a year of schooling is 12 months), what are R^2, SER and B1.?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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1. You use a random sample of 1,002 individuals and estimate the following OLS model wage, = 10.6 + 1.2 * Schooling Where wage is measured in dollars per hour and schooling is measured in the number of years of education. You have also calculated TSS = 8,000 and SER = 2.00. a. If a person increases the number of years of schooling by 4 years, what is the predicted effect on their wage? b. The sample average for wage is $25/hour. What is the sample average for years of schooling? c. The sample covariance for wage and schooling is 2.15. What is the sample standard deviation for years of schooling? d. What is the R2? e. If the education variable is in months of schooling rather than years (assume a year of schooling is 12 months), what are R^2, SER and B1.?
Transcribed Image Text:1. You use a random sample of 1,002 individuals and estimate the following OLS model wage, = 10.6 + 1.2 * Schooling Where wage is measured in dollars per hour and schooling is measured in the number of years of education. You have also calculated TSS = 8,000 and SER = 2.00. a. If a person increases the number of years of schooling by 4 years, what is the predicted effect on their wage? b. The sample average for wage is $25/hour. What is the sample average for years of schooling? c. The sample covariance for wage and schooling is 2.15. What is the sample standard deviation for years of schooling? d. What is the R2? e. If the education variable is in months of schooling rather than years (assume a year of schooling is 12 months), what are R^2, SER and B1.?
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