**Unformatted text preview: **b)sample size is 1534 and 2 is 0.0747. c)When the matching rate is zero, which means 1 dollar contribution by a worker participation in the plan is matched by 0 contribution by the firm, the participation rate is 83.07%. When there is a one unit increase in matching rate, the participation rate in crease by 5.86%, keeping other variables constant. The error term u contains age and marriage status( whether he/she is sole or not). d) mrate= 3.5,prate=83.07%+3.5%*5.86%=83.27%. This is not a reasonable prediction because 3.5mrate means that 1 dollar contributed by worker is matched by 350 cents contribution by the firm. In this case, the input of worker is way smaller than return and is largely beneficial which could attract everyone with possibly 100 participation rate instead of 83.27. e)7.47% variation of prate is explained by mrate. This is very little. f)The regression using lnmrate has higher 2 g)...

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- Winter '17