Loose-leaf Version for Microeconomics: Principles for a Changing World 4E w/ FlipIt for Microeconomics (Six Months Access) w/ LaunchPad 4E (Six Months Access)
4th Edition
ISBN: 9781319121402
Author: Eric Chiang
Publisher: Worth Publishers
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Chapter 11, Problem 15QP
To determine
Explain the marginal revenue product of the fourth dance instructor.
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Problem 3
Stata Output Analysis
Suppose a study investigates the causal effect of education on wages.
Table 1 reports the results of an OLS regression of wages (wage per hour in dollars) on
education (years in education).
Table 1
Source
SS
df
MS
Number of obs
=
3,017
F(1, 3015)
=
298.39
Model
Residual
18904467
191011981
1
18904467
3,015 63353.8909
Prob > F
0.0000
R-squared
0.0901
Adj R-squared
0.0898
Total
209916448
3,016 69600.9444
Root MSE
251.7
wage
Coef. Std. Err.
t
P>|t|
[95% Conf. Interval]
education
cons
29.56644
183.9342
1.711605
23.15976
17.27 0.000
7.94 0.000
26.21041
138.5237
32.92247
229.3447
a. How would you write this relationship using the Core Model? (5 points)
b. What is the value for B₁, the coefficient on Education? (2 points)
C. What is the standard error of ẞ₁? (2 points)
d. What is the R squared for the model? (2 points)
e. What is the t statistic for ₁at the 5% level of significance? (2 points)
Λ
f. What is the 95% confidence interval for B₁? (2 points)
Λ
g.…
Chapter 11 Solutions
Loose-leaf Version for Microeconomics: Principles for a Changing World 4E w/ FlipIt for Microeconomics (Six Months Access) w/ LaunchPad 4E (Six Months Access)
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