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This question was created from ECON103_ProblemSet3_2018.pdf


(a) Obtain the summary statistics and histograms for the variables WAGE and E
data characteristics.
(b) Estimate the linear regression WAGE = 81 + BEDUC + e and discuss the
(c) Calculate the least squares residuals and plot them against EDUC. Are any
If assumptions SRI - SR5 hold, should any patterns be evident in the least squat
(d) Estimate separate regressions for males, females, blacks, and whites. Compar
(e) Estimate the quadratic regression WAGE = on + 02EDUC' + e and discus
timate the marginal effect of another year of education on wage for a person
education, and for a person with 14 years of education. Compare these values
marginal effect of education from the linear regression in part (b).

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