obtained a sub-sample of 1744 individuals from the Current Population Survey (CPS) and are interested in the relationship between weekly earnings and age. The regression, using heteroskedasticity-robust standard errors, yielded the following result:    = 239.16 + 3.75× Age, R2 = 0.15, SER = 287.21.,   where Earn and Age are measured in dollars and years respectively.   Interpret the intercept?   Interpret the slope coeffici

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You have obtained a sub-sample of 1744 individuals from the Current Population Survey (CPS) and are interested in the relationship between weekly earnings and age. The regression, using heteroskedasticity-robust standard errors, yielded the following result:

 

 = 239.16 + 3.75× Age, R2 = 0.15, SER = 287.21.,

 

where Earn and Age are measured in dollars and years respectively.

 

  • Interpret the intercept?

 

  • Interpret the slope coefficient

 

  • b) Is the effect of age on earnings large?

 

  • The average age in this sample is 37.5 years. What is annual income in the sample?

 

       (e) Interpret the measures of fit.

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