50 - Chapter 3, Exercise Solutions, Principles of...

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Chapter 3, Exercise Solutions, Principles of Econometrics, 3e 50 EXERCISE 3.12 (a) Estimated equation: n () ( ) 8.6658 0.0824 (se) 0.3787 0.0173 ( ) 22.88 4.77 WAGE EXPER t =+ The estimated equation tells us that with every year of experience the associated increase in hourly wage is $0.0824. Furthermore, it tells us that the average wage for those without experience is $8.6658. The relatively large t -values suggest that the least squares estimates are statistically significant at a 5% level of significance. 0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 EXPER WAGE
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This note was uploaded on 11/23/2011 for the course ECON MPBE taught by Professor Jansveceny during the Spring '11 term at Metropolitní Univerzita Praha.

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