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Suppose we would like to study the return to education, and obtain the following result   log 4(wage) = 0.584+ 0.083 × educ, n=526, R2 = 0.186 where educ is the years of education, and log(wage) is hourly wage measured in dollars taken in logarithm. Interpret the estimated coefficients.  What is the meaning of the regression R2?  What is the prediction of the hourly wage for a college graduate?

Suppose we would like to study the return to education, and obtain the following result   log 4(wage) = 0.584+ 0.083 × educ, n=526, R2 = 0.186 where educ is the years of education, and log(wage) is hourly wage measured in dollars taken in logarithm. Interpret the estimated coefficients.  What is the meaning of the regression R2?  What is the prediction of the hourly wage for a college graduate?

MATLAB: An Introduction with Applications
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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1. Suppose we would like to study the return to education, and obtain the following result

 

log 4(wage) = 0.584+ 0.083 × educ, n=526, R2 = 0.186

where educ is the years of education, and log(wage) is hourly wage measured in dollars taken in logarithm.

  1. Interpret the estimated coefficients. 
  2. What is the meaning of the regression R2? 
  3. What is the prediction of the hourly wage for a college graduate? 
  4. Do you think the regression result is convincible? Explain your reason.
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