ECON2206/ECON3290: Introductory EconometricsSession 1, 2009Tutorial Assignment for Week 4Multiple Regression - EstimationSolutions to this tutorial assignment will be collected at the beginning of the tutorial. Attach a printoutof your SHAZAM output to your answers (otherwise full credit will not be awarded).1. Explaining Educational Choices -Based on Wooldridge, Problem 3.2The data in WAGES.RAW was used to examine the factors which influenced an individual’s level ofeducational attainment.For the sample individuals the following multiple regression estimates wereobtained:deduc= 10.36−0.110sibs+ 0.324meduc+ 0.192feducn= 884,R2= 0.314whereeducis years of schooling,sibsis number of siblings,meducis mother’s years of schooling, andfeducis father’s years of schooling.(i) Doesmeduchave the expected effect ? Explain.Holdingsibsandfeducfixed, by how much doesmeduchave to increase to increase predicted years of education by one year ? (A noninteger answer isacceptable.)
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