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Econ assign 1

Econ assign 1 - Part 1 of 1 5.0 5.0 Points Question 1 of 12...

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Part 1 of 1 - 5.0/ 5.0 Points

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Question 1 of 12 Wage i = ß 0 + ß 1 Education i + u i What is the meaning of ß 0 in this example? Beta 0 is the Y-intercept of the function. It tells you the expected wage when education is 0 Question 2 of 12 What is the meaning of ß 1 in this example? Beta 1 is the slope of the regression line. It is the change in wage associated with unit change in education. Question 3 of 12 Wage is measured in \$/hr. Education is measured in years (of schooling). What is the unit of ß 0 ? \$/hr Question 4 of 12 What is the unit of ß 1 ? \$/hr*1/schooling years Question 5 of 12 What is the unit of u i ? \$/hr Question 6 of 12 Go back to the definition of the unobservables. Name two variables that you think are affecting u i ?
1. the university that you got your education from, and 2. the geographic location that you live in Question 7 of 12 Report ß ^ 0 in this specific sample 3.359672 Question 8 of 12 Report ß ^ 1 in this specific sample 0.590571 Question 9 of 12 Jane has 16 years of education. What is your prediction for her hourly wage?

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Econ assign 1 - Part 1 of 1 5.0 5.0 Points Question 1 of 12...

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