Let wages denote a person's hourly wages and edu denote their years of education. Suppose that wages= B₁ + Bedu + Bedu² +e and that e is normally distributed with mean zero and variance one (so e~ N(0, 1)). Suppose we know ß₁ = 1, B₂ = 0.2, B3 = -0.01, and we observe an individual with 16 years of education. What is the probability that her wages are larger than one? In the options below, Z~ N(0, 1). O a. P(Z 2-0.64) O b. 1- P(Z > 1.64) None of the other options is correct. 1- P(Z > -0.64) O c. O d. O e. P(Z 2 1.64)

MATLAB: An Introduction with Applications
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Let wages denote a person's hourly wages and edu denote their years of education. Suppose that
wages = ß1 + Bzedu + ß3edu² + e
and that e is normally distributed with mean zero and variance one (so e ~ N(0, 1)). Suppose we know B1 = 1, B2 = 0.2, ß3 = -0.01, and we observe an individual with
16 years of education. What is the probability that her wages are larger than one? In the options below, Z ~ N(0, 1).
O a. P(Z > -0.64)
Ob.
1- P(Z > 1.64)
O c. None of the other options is correct.
O d. 1- P(Z > -0.64)
O e. P(Z > 1.64)
Transcribed Image Text:Let wages denote a person's hourly wages and edu denote their years of education. Suppose that wages = ß1 + Bzedu + ß3edu² + e and that e is normally distributed with mean zero and variance one (so e ~ N(0, 1)). Suppose we know B1 = 1, B2 = 0.2, ß3 = -0.01, and we observe an individual with 16 years of education. What is the probability that her wages are larger than one? In the options below, Z ~ N(0, 1). O a. P(Z > -0.64) Ob. 1- P(Z > 1.64) O c. None of the other options is correct. O d. 1- P(Z > -0.64) O e. P(Z > 1.64)
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