This regression is on 1744 individuals and the relationship between their weekly earnings (in dollars) and...

This regression is on 1744 individuals and the relationship between their weekly earnings (in dollars) and age (in years) during 2019. The regression yielded the following result: = 239.16 + 5.20 × Age , R2 = 0.05, SER = 287.21 (20.24) (0.57) ( Values in parentheses are heteroskedasticity robust standard errors, respectively)

(a) Is the relationship between Age and Earn statistically significant?

(b) The variance of the error term and the variance of the dependent variable are related. Given the distribution of earnings, do you think it is plausible that the distribution of errors is normal?

(c) Construct a 95% confidence interval for the slope coefficient, and use it to test for the statistical significance of the slope coefficient.

(d) Construct a 95% confidence interval for the intercept coefficient, and use it to test for the statistical significance of the intercept coefficient.

Expert Solution

orchestra answered 2 years ago

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This regression is on 1744 individuals and the relationship between their weekly earnings (in dollars) and...

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Related Solutions

1) Construct a scatter diagram and comment on the relationship, if any, between the variables Weekly Hours and Weekly Earnings.

A researcher is interested in determining whether there is a relationship between the weekly number of...

In 2003, the average weekly earnings of truck drivers was $603 while average weekly earnings of...

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what the relationship between the agency theory and earnings management ?

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