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Consider the following model: lnWAGEi=0+1EDUCi+2EXPER+3EXPERi2+ui, where
lnWAGE denotes the logarithm of wages of married women, EDUC is years of education, and
EXPER is years of experience. The model was estimated using OLS (standard errors in
parentheses, n=750 ): a) Using estimated coefficients, describe the impact of changes in
education and experience on wages. b) Test 2 and 3 for significance (individually) at the 1%
significance level and report corresponding p-values. c) Test at the 5% level the hypothesis that
1(EDuC) is no greater than 0.1. d) Construct a 95% confidence interval for 1(EDUC. When
testing H0:1=b versus Ha:1=b, what is the range of values of b, for which we will not reject the
null hypothesis at the 5% significance level?

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Consider the following model lnWAGEi=0+1EDUCi+2EXPER+3EXPERi2+ui, wh.pdf

  • 1. Consider the following model: lnWAGEi=0+1EDUCi+2EXPER+3EXPERi2+ui, where lnWAGE denotes the logarithm of wages of married women, EDUC is years of education, and EXPER is years of experience. The model was estimated using OLS (standard errors in parentheses, n=750 ): a) Using estimated coefficients, describe the impact of changes in education and experience on wages. b) Test 2 and 3 for significance (individually) at the 1% significance level and report corresponding p-values. c) Test at the 5% level the hypothesis that 1(EDuC) is no greater than 0.1. d) Construct a 95% confidence interval for 1(EDUC. When testing H0:1=b versus Ha:1=b, what is the range of values of b, for which we will not reject the null hypothesis at the 5% significance level?