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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.?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 1GP
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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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