Sarah wants to compare her estimates to that of another researcher who used incomes measured in thousands of rands and educational achievement measured in months. What will be values of the parameter estimates (estimated in Part 2), and their standard errors (given in Part 2), be if earn is measured in thousands of rands, and ed
Sarah wants to compare her estimates to that of another researcher who used incomes measured in thousands of rands and educational achievement measured in months. What will be values of the parameter estimates (estimated in Part 2), and their standard errors (given in Part 2), be if earn is measured in thousands of rands, and ed
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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Sarah wants to compare her estimates to that of another researcher who used incomes measured in thousands of rands and educational achievement measured in months. What will be values of the parameter estimates (estimated in Part 2), and their standard errors (given in Part 2), be if earn is measured in thousands of rands, and educ is measured in months?
Question 1
β^∗1=
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Question 2
β^∗2= .
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Question 5
Sarah runs a test on the residuals of her model and discovers that σ2=245.34 for individuals with 1 year of education, 356.12 for individuals with 8 years of education, and 386.32 for individuals with 15 years of education. What is the implication so this finding?
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Question 6
Taking another look at the data, Sarah realises that the positive relationship between education and income holds only up to a particular value for education (16 years) then the relationship becomes negative. How should she model this relationship?
Part 2 Instructions Sarah wants to estimate the relationship between individual earnings in the labour market (earn) and years of education achieved (educ). She collects data from a sample of 122 individuals on their monthly salaries (Y), measured in rands, and education levels (X), measured in years of education. Based on these data, she derives the following estimates: ∑XY=41421943.8
∑X2=15472 ∑X=1242 ∑Y=3401031 |
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