lolah5127
13.10.2020 •
Mathematics
Use the dataset WAGE2.dta (or the corresponding spreadsheet). Run a regression of the log of wage on the following explanatory variables: educ, exper, tenure and IQ.
(a) What is the 99 percent confidence interval for educ coefficient?
(b) What is the p-value for the t-test examining the hypothesis that a year of education only yields a
2 percent higher salary than getting a year of experience at the same firm? (N.B. Tenure increases
here too!)
(c) What is the t-statistic for the hypothesis that a year of education has the same effect on wage
growth as 10 extra IQ points?
(d) What is the F-statistic for the joint significance test for educ and IQ?
data linked
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