1. A researcher is studying the effect of parents' level of education on educationalachievement of individuals. Using data on completed years of education (educ), mother'slevel of education (motheduc), father's level of education (fatheduc), a measure of cognitiveability (abil), and logarithm of family income (Lincome), the researcher estimates 4 models.Table (1) shows the OLS estimates for each model, with standard errors in parenthesesunderneath each coefficient. The dependent variable in all the models is educ.Model 1Model 2Model 3Model 4Independent variablesLincome(0.2)0.15(0.03)0.10(0.02)0.35(0.03)0.09motheduc0.27(0.02)0.18(0.03)0.110.17(0.03)0.11fatheduc(0.02)0.52(0.03)(0.02)0.39(0.03)0.05(0.01)8.74abil0.53(0.03)abil_squared(0.01)8.746.94(0.32)12303999.240.358.4(0.12)1230Intercept(0.31)12303785.240.45(0.31)1210SSRR-squared3899.970.38Table (1)3541.20.49b. Can you reject the claim that the returns to ability are linear? Be explicit about thehypothesis and any assumptions you make in order to answer the question.

given: b. If we take the assumption that there is no direct relationship between cognitive ability…

Answered: achievement of individuals. Using data…

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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