Let wages denote hourly wages, educ years of education, and exper years of experience, and supposelog(wages) = f1 + 62educ + B3exper +ewhere E[eleduc, exper] = 0. Let b1, b2, and bz be our estimates for B1, B2, and ß3 and r23 denote the samplecorrelation between {educ,}", and {exper, }". Which of the following statements is true?IIO a. The variance of b3 does not depend on r23.O b. The variance of b, is increasing in E" (educ, – educ,)² (all else equal).O c. The variance of b2 is at least as large as o²/ E", (educ, - educ,)2 for o?Var(eleduc, exper).O d. The variance of b2 depends on the sign of r23.O e. The variance of b2 always increases as r23 increases (all else equal).

Let wages denote hourly wages, educ years of education, and exper years of experience, and suppose log(wages) = Bi + Bzeduc + B3exper + e where E[e|educ, exper] = 0. Let b, b2, and bz be our estimates for B1. B2, and ß3 and r23 denote the sample correlation between {educ, }" and {exper,}". Which of the following statements is true? %3D O a. The variance of bz does not depend on r23. O b. The variance of b2 is increasing in E",(educ, - educ,)² (all else equal). C. The variance of ba is at least as large as g2/" (educ educ 12 - Varlale

Let wages denote hourly wages, educ years of education, and exper years of experience, and suppose log(wages) = Bi + Bzeduc + B3exper + e where E[e|educ, exper] = 0. Let b, b2, and bz be our estimates for B1. B2, and ß3 and r23 denote the sample correlation between {educ, }" and {exper,}". Which of the following statements is true? %3D O a. The variance of bz does not depend on r23. O b. The variance of b2 is increasing in E",(educ, - educ,)² (all else equal). C. The variance of ba is at least as large as g2/" (educ educ 12 - Varlale

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter10: Sequences, Series, And Probability

Section10.8: Probability

Problem 32E

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