Model Selection & Functional Form: Female (takes a value for 1 if female, 0 if not female) and Non-White (and value of 1 if NonWhite, 0 if white) are dummy variables. Age is measured continuously in years, and Age Squared is the square of Age. Education is measured in years, Earnings measured in dollars, and Log Earnings are the log transformation of earnings. Are the predictor variables in Models A & B statistically significant at the 5% significance level? Carefully interpret and explain the coefficients for Female, Non-White, Age Squared and Education in models A and B. Compare Model A to Model B. Which model would use for purposes of prediction and why? In your preferred model, should we add Age Squared? Is your chosen model a good model? Explain why or why not.
Model Selection & Functional Form: Female (takes a value for 1 if female, 0 if not female) and Non-White (and value of 1 if NonWhite, 0 if white) are dummy variables. Age is measured continuously in years, and Age Squared is the square of Age. Education is measured in years, Earnings measured in dollars, and Log Earnings are the log transformation of earnings. Are the predictor variables in Models A & B statistically significant at the 5% significance level? Carefully interpret and explain the coefficients for Female, Non-White, Age Squared and Education in models A and B. Compare Model A to Model B. Which model would use for purposes of prediction and why? In your preferred model, should we add Age Squared? Is your chosen model a good model? Explain why or why not.
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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- Model Selection &
Functional Form:
Female (takes a value for 1 if female, 0 if not female) and Non-White (and value of 1 if NonWhite, 0 if white) are dummy variables. Age is measured continuously in years, and Age Squared is the square of Age. Education is measured in years, Earnings measured in dollars, and Log Earnings are the log transformation of earnings.
- Are the predictor variables in Models A & B statistically significant at the 5% significance level?
- Carefully interpret and explain the coefficients for Female, Non-White, Age Squared and Education in models A and B.
- Compare Model A to Model B. Which model would use for purposes of prediction and why? In your preferred model, should we add Age Squared? Is your chosen model a good model? Explain why or why not.
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