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(Solved): econometrics please help Consider the wage model below, the regressors are Education (in years), Exp ...



econometrics please help

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student submitted image, transcription available below
student submitted image, transcription available below
Consider the wage model below, the regressors are Education (in years), Experience (in years), Experience squared (in years) and Hours Worked (in hours): ANOVA The dependent variable is wages (in hundreds of Rands). a. Interpret the coefficients for Education and Experience in the model. b. Comment on the statistical significance of Edication and Hours Iorked? (5) Comment on the statistical significance of Education and Hours Worked? c. Test for the joint significance of Education and Hours Worked at the significance level. The residual sum of squares of the restricted model is 145430,8937 . Ensure to set up the hypothesis if variables are zero or not. (8) Page 2 of 3 d. Briefly explain what happens to wages for individuals with extremely high levels of experience? c. Briefly explain how to identify heteroscedastigity? (3) (2) f. What does the unbiasedness of the OLS estimator mean? (3) d. Briefly explain what happens to wages for individuals with extremely high levels of experience? e. Briefly explain how to identify heteroscedasticity? f. What does the unbiasedness of the OLS estimator mean? (3) g. Assume Education is omitted, explain how omitting a relevant variable like Education results in biasedness of estimators? (5) h. Describe the direction of the biasedness between Education and Experience assuming the correlation between the two variables is negative. (3) i. Determine the overall significance of the regression at the significance level. Ensure to set up the hypothesis. (6)


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