Answers to HW4 CUNY Queens College ECON382|100% correct

Use the data in WAGE for the following exercise. Consider the standard wage equation log(wage)=β0+β1 log(educ)+β2exper+β3tenure+u 1) The estimated equation is log(wage) = 3.79 + 1.047 log(educ) + .0159 exper + .01337 tenure (.25) (.090) (.00338) (.) n = 935, R 2 = .1574 2) The corresponding p-value=0.000 5%. Reject the null hypothesis that β0=0. β0 is significant at 5% significance level. The corresponding p-value=0.000 5%. Reject the null hypothesis that β1=0. β1 is significant at 5% significance level. The corresponding p-value=0.000 5%. Reject the null hypothesis that β2=0. β2 is significant at 5% significance level. The corresponding p-value=0.000 5%. Reject the null hypothesis that β3=0. β3 is significant at 5% significance level. 3) Yes. The p-value for the overall significance test is 0.0000 5% so reject the null that all the slope parameters are zeros. 4) [., .02