The following model estimates the effect of the return to education: wage = A + B, educ + Berper + Berper + u (A2) where wage refers to wage in thousands of dollars, educ refers to education level in years, and erper refers to years of experience. Researchers have found that education level is usually misreported by the surveyed individuals. However, while the errors are quite frequent, they are completely at random. What would be the impact of this type of erors on the estimates in Model (A2)? Select one: O a. As the errors are completely at random, they won't cause any problem when estimating Model (A2). O b. This type of errors will bias the estimates of all parameters towards zero. Oc This type of errors will bias the estimate of B towards zero. O d. This type of errors will bias the estimate of Ba towards zero. O e. This type of errors will bias the estimates of B and B towards zero.
The following model estimates the effect of the return to education: wage = A + B, educ + Berper + Berper + u (A2) where wage refers to wage in thousands of dollars, educ refers to education level in years, and erper refers to years of experience. Researchers have found that education level is usually misreported by the surveyed individuals. However, while the errors are quite frequent, they are completely at random. What would be the impact of this type of erors on the estimates in Model (A2)? Select one: O a. As the errors are completely at random, they won't cause any problem when estimating Model (A2). O b. This type of errors will bias the estimates of all parameters towards zero. Oc This type of errors will bias the estimate of B towards zero. O d. This type of errors will bias the estimate of Ba towards zero. O e. This type of errors will bias the estimates of B and B towards zero.
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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Transcribed Image Text:The following model estimates the effect of the return to education:
wage=B+Beduc + Berper + Berper²+u (42)
where wage refers to wage in thousands of dollars, educ refers to education level in years, and exper refers to years of experience. Researchers have found that education level is usually misreported by the surveyed individuals. However, while the
errors are quite frequent, they are completely at random. What would be the impact of this type of errors on the estimates in Model (A2)?
Select one:
O a. As the errors are completely at random, they won't cause any problem when estimating Model (A2).
O b.
This type of errors will bias the estimates of all parameters towards zero.
O c.
This type of errors will bias the estimate of ₁ towards zero.
O d. This type of errors will bias the estimate of B₂ towards zero.
Oe. This type of errors will bias the estimates of B₂ and ₂ towards zero.
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