A researcher has collected and analyzed data to study the returns to education for a representative sample of the US population in 2005. Results of this analysis are reported in Table 1 below. The dependent variable is log(AHE), the logarithm of the person's average hourly earnings; Education is measured in years; F female is a dummy variable, equal to 1 if the person is a woman and 0 otherwise; finally, Experience measures the years of labor market experience. Estimate Std. Error t value Pr(> 2) 0.000 0.000 0.022871 (Intercept) Education 1.4387 62.902 0.1ZZZ 0.001154 89.789 Female -0.4499 0.024276 -18.534 0.000 0.001718 0.001222 0.000023 7.714 0.000 Female x Education Experience Experience 0.0133 0.0144 11.751 -8.950 0.000 -0.0002 0.000 Table 1: Regression Output A) Replace ZZZ with 1335 So Education as 0.1335 and solve the problem based on that What is the effect captured by B5? If BS is negative, what happens to log(AHE) when Experience increases? B) What is the expected percentage change in AHE after a change of 2 units in Education when Female = 0? What is this expected percentage change when F female 1? C) What is the expected percentage change in AHE after an increase of 5 units in Experience when Experience = 3? Construct a 95% confidence interval for this percentage change. You can use this information if you need: CovlB 4, B 5)-0.022
A researcher has collected and analyzed data to study the returns to education for a representative sample of the US population in 2005. Results of this analysis are reported in Table 1 below. The dependent variable is log(AHE), the logarithm of the person's average hourly earnings; Education is measured in years; F female is a dummy variable, equal to 1 if the person is a woman and 0 otherwise; finally, Experience measures the years of labor market experience. Estimate Std. Error t value Pr(> 2) 0.000 0.000 0.022871 (Intercept) Education 1.4387 62.902 0.1ZZZ 0.001154 89.789 Female -0.4499 0.024276 -18.534 0.000 0.001718 0.001222 0.000023 7.714 0.000 Female x Education Experience Experience 0.0133 0.0144 11.751 -8.950 0.000 -0.0002 0.000 Table 1: Regression Output A) Replace ZZZ with 1335 So Education as 0.1335 and solve the problem based on that What is the effect captured by B5? If BS is negative, what happens to log(AHE) when Experience increases? B) What is the expected percentage change in AHE after a change of 2 units in Education when Female = 0? What is this expected percentage change when F female 1? C) What is the expected percentage change in AHE after an increase of 5 units in Experience when Experience = 3? Construct a 95% confidence interval for this percentage change. You can use this information if you need: CovlB 4, B 5)-0.022
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 2TI: Sales of a video game released in the year 2000 took off at first, but then steadily slowed as time...
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Transcribed Image Text:A researcher has collected and analyzed data to study the returns to education for a representative
sample of the US population in 2005. Results of this analysis are reported in Table 1 below. The
dependent variable is log(AHE), the logarithm of the person's average hourly earnings; Education is
measured in years; F female is a dummy variable, equal to 1 if the person is a woman and 0 otherwise;
finally, Experience measures the years of labor market experience.
Estimate Std. Error
t value Pr(> 2)
0.000
0.000
0.022871
(Intercept)
Education
1.4387
62.902
0.1ZZZ
0.001154
89.789
Female
-0.4499
0.024276 -18.534
0.000
0.001718
0.001222
0.000023
7.714
0.000
Female x Education
Experience
Experience
0.0133
0.0144
11.751
-8.950
0.000
-0.0002
0.000
Table 1: Regression Output
A)
Replace ZZZ with 1335 So Education as 0.1335 and solve the problem based on that What is the effect
captured by B5? If BS is negative, what happens to log(AHE) when Experience increases?
B)
What is the expected percentage change in AHE after a change of 2 units in Education when Female = 0?
What is this expected percentage change when F female 1?
C)
What is the expected percentage change in AHE after an increase of 5 units in Experience when
Experience = 3? Construct a 95% confidence interval for this percentage change. You can use this
information if you need: Cov(B" 4, B 5) 0.022
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