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3. A function relating wages to years of education and experience is, wage=5+300 edu+700+exper-4+edurexper-2+edu-3 exper? (a) What is the partial effect of education (edu) on wage? How to interpret the partial effect ofedu on wage?

3. A function relating wages to years of education and experience is, wage=5+300 edu+700+exper-4+edurexper-2+edu-3 exper? (a) What is the partial effect of education (edu) on wage? How to interpret the partial effect ofedu on wage?

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: Earnings And Discrimination
Section: Chapter Questions
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Tools Table Window Help Problem Set 3-edited-Saved to my Mac ... erences Mailings Review View O Tell me - v E DE AaBbCcDdEe AaBbCcDdEe AaBbCcDdFe AaBbCcDdEe AaBbC v A v Body Text List Paragraph Normal No Spacing Table 4. Suppose that you are a financial analyst for the popular restaurant chain Applebee's. Theregional manager, Ed, is wanting you to estimate the cost curve of the Applebee's in the Northeast district. He wants you to run the following model: In(Cost) =`& +ªQi +aLonglslandı + u where Cost, is the cost of operations on day i, Qi is the number of meals served, and LongIsland; is the number of Long Islands (an alcoholic beverage) served on day i. You estimate the model and get the following results: SUMMARY OUTPUT Regression Statistics Multiple R R Square 0.48 0.23 Adjusted R Squ 0.22 Standard Error 0.00 Observations 174 ANOVA df MS F Significance F SS 2 0.00 7.59257E-05 25.64 0.00 Regression Residual 171 0.00 2.96121E-06 Total 173 0.00 Coefficients Standard Error 9.23 t Stat 867.68 2.25 Upper 95% 9.21 0.00 P-value Lower 95% Intercept 0.01 0.00 9.25 0.0006 0.00 0,03 0.00 Long Island 0.00 0.00 0.0004 0.00 2.46 0.02 What is the statistical interpretation of y and a? Focus atv
Transcribed Image Text:Tools Table Window Help Problem Set 3-edited-Saved to my Mac ... erences Mailings Review View O Tell me - v E DE AaBbCcDdEe AaBbCcDdEe AaBbCcDdFe AaBbCcDdEe AaBbC v A v Body Text List Paragraph Normal No Spacing Table 4. Suppose that you are a financial analyst for the popular restaurant chain Applebee's. Theregional manager, Ed, is wanting you to estimate the cost curve of the Applebee's in the Northeast district. He wants you to run the following model: In(Cost) =`& +ªQi +aLonglslandı + u where Cost, is the cost of operations on day i, Qi is the number of meals served, and LongIsland; is the number of Long Islands (an alcoholic beverage) served on day i. You estimate the model and get the following results: SUMMARY OUTPUT Regression Statistics Multiple R R Square 0.48 0.23 Adjusted R Squ 0.22 Standard Error 0.00 Observations 174 ANOVA df MS F Significance F SS 2 0.00 7.59257E-05 25.64 0.00 Regression Residual 171 0.00 2.96121E-06 Total 173 0.00 Coefficients Standard Error 9.23 t Stat 867.68 2.25 Upper 95% 9.21 0.00 P-value Lower 95% Intercept 0.01 0.00 9.25 0.0006 0.00 0,03 0.00 Long Island 0.00 0.00 0.0004 0.00 2.46 0.02 What is the statistical interpretation of y and a? Focus atv
ls Table Window Heip Problem Set 3-edited-Saved to my Mac Mailings Review View O Tell me AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe Normal Body Text List Paragraph No Spacing 3. A function relating wages to years of education and experience is, wage=5+300+edu+700*exper-4+edurexper-2+edu?-3+exper? (a) What is the partial effect of education (edu) on wage? How to interpret the partial effect ofedu on wage? (b) What is the partial effect of experience (exper) on wage? How the interpret the partialeffect of exper on wage? (c) For someone who has 12 years of education (edu=12) and 5 years of experience (exper=5).How will the wage change for one more year of education (if increase edu by one year)? EFocus tv
Transcribed Image Text:ls Table Window Heip Problem Set 3-edited-Saved to my Mac Mailings Review View O Tell me AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe Normal Body Text List Paragraph No Spacing 3. A function relating wages to years of education and experience is, wage=5+300+edu+700*exper-4+edurexper-2+edu?-3+exper? (a) What is the partial effect of education (edu) on wage? How to interpret the partial effect ofedu on wage? (b) What is the partial effect of experience (exper) on wage? How the interpret the partialeffect of exper on wage? (c) For someone who has 12 years of education (edu=12) and 5 years of experience (exper=5).How will the wage change for one more year of education (if increase edu by one year)? EFocus tv
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