Consider the simple linear regression model: Wage B1+ẞ2 educ+e, where = 1. Wage means daily wage measured in dollars. 2. educ means years of education (schooling) The regression output is given below: . reg wage educ Source | SS df MS Number of obs = 100 F(2, 97) = 97.14 Model | 10000.00 Residual | 10000.00 1 5000.00 Prob > F = 0.0000 98 100.00 R-squared = 0.5000 Adj R-squared = 0.4900 Total | 20000.00 99 200.00 Root MSE = 10.000 wage | Coef. Std. Err. t P>|t| [95% Conf. Interval] educ _cons | 10.0000 10.0000 5.0000 10.0000 2.00 1.00 0.050 0.317 0.0000 -20.0000 20.0000 30.0000
Consider the simple linear regression model: Wage B1+ẞ2 educ+e, where = 1. Wage means daily wage measured in dollars. 2. educ means years of education (schooling) The regression output is given below: . reg wage educ Source | SS df MS Number of obs = 100 F(2, 97) = 97.14 Model | 10000.00 Residual | 10000.00 1 5000.00 Prob > F = 0.0000 98 100.00 R-squared = 0.5000 Adj R-squared = 0.4900 Total | 20000.00 99 200.00 Root MSE = 10.000 wage | Coef. Std. Err. t P>|t| [95% Conf. Interval] educ _cons | 10.0000 10.0000 5.0000 10.0000 2.00 1.00 0.050 0.317 0.0000 -20.0000 20.0000 30.0000
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
Problem 17HP
Question
- What is the expected value of the Wage for a person with 15 years of education?
(a) 15
(b) 25
(c) 115
(d) 250
(e) 160
- What is the expected value of the marginal effect of an additional year of education for a person with 15 years of education?
(a) 100
(b) 10
(c) 20
(d) 15
(e) 115
- What is the expected value of the elasticity of education on wages for a person with 15 years of education at its expected wage?
(a) 1.5
(b) 150
(c) 15·15 / 150
(d) 1
(e) 160 / 150
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