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Unformatted text preview: : 02) Educ : 14 : 145 : 12 (0 : 03) (0 : 03) (0 : 03) Female & : 30 & : 32 (0 : 10) (0 : 10) Age 2 & : 05 (0 : 03) Age ± Educ : 10 (0 : 04) R 2 : 50 : 53 : 60 R 2 : 48 : 51 : 57 n 100 100 100 1. Using Column (1), what is the e/ect of smoking on wages? 2. Under which conditions would the coe¢ cient on smoking give you a causal interpretation of smoking on wages? 3. Test the null hypothesis that the population parameter of smoking is equal to 0.15 agianst the alternative the paramter is di/erent from 0.15. 4. Using Column (1), test the signi&cance of the regression (i.e. test whether all parameters but the constant are equal to zero). 5. Comparing Column (1) and (2) you observe that the coe¢ cient on smoking is more negative in column (2) than in column (1). Why is this the case? 6. Test whether you should use Model (3) instead of Model 1 at the 5% signi&cance level. 2...
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 Spring '08
 Weber
 Regression Analysis, 5%, dummy variable, OVB Econ

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