Consider the relationship between hourly wage rate and education attainment. A random sample of 21 male...

Consider the relationship between hourly wage rate and education attainment. A random sample of 21 male workers was collected to estimate the following model

Yi =β0+β1Xi+ui,fori=1,...,21.

Here,Yi isthelogarithmofhourlywagerate,log(wage),forthei-thworker.Xi istheeducation level, husedu, of the i-th worker, which is measured as the years of schooling, and ui is the error term for the i-th worker. The ordinary least squares (OLS) estimation of the model is reported in the table below. The variable ones

18. (3points) Accordingtotheestimates,whatisthepredictedvalueofthelogarithmofhourly wage for a male worker with 12 years of schooling?

19. (3 points) The standard error of β1 is se(β1) = 0.016 as shown in the OLS results. Test the hypothesis

H0 :β1 =0.03 H1 : β1 ̸= 0.03.

Use the 0.01 significance level.

20. (3 points) Construct the 95% confidence interval for the population parameter β1.

21. (3 points) The standard error of the regression is 0.1853 (not shown in the results table), and the R -squared is 0.525. Use these values to obtain the total sum of squares of the dependent variable.

??

Expert Solution

orchestra answered 1 year ago

Margaret Strand’s regular hourly wage rate is $24, and she receives an hourly rate of $36...

Margaret Strand’s regular hourly wage rate is $24, and she receives an hourly rate of $36 for work in excess of 40 hours. During a January pay period, Margaret works 45 hours. Margaret’s federal income tax withholding is $91, and she has no voluntary deductions. Compute Margaret Strand’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%. (Round answers to 2 decimal places, e.g. 15.25.) Margaret’s gross earnings $ Margaret’s net pay...

Kimberly Strand’s regular hourly wage rate is $30, and she receives an hourly rate of $45...

Kimberly Strand’s regular hourly wage rate is $30, and she receives an hourly rate of $45 for work in excess of 40 hours. During a January pay period, Kimberly works 48 hours. Kimberly’s federal income tax withholding is $98.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare the employer’s journal entries to record (a) Kimberly’s pay for the period and (b) the payment of Kimberly’s wages. Use January 15 for the end of...

how is the relationship between the wage rate and the quatity of labor supplied?

Suppose we wish to study the effect of education on an individual’s hourly wage using a...

Suppose we wish to study the effect of education on an individual’s hourly wage using a sample of individuals. For each individual i in our sample, let wi denote hourly wage, let ei denote years of post-high school education, let si denote sex (suppose si = 1 for females and si = 0 for males). Consider estimating the relationship: wi = α + βei + ei where α and β are unobservable population parameters and i is the component of...

A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s).

Salary Education 33 5 55 3 80 8 53 7 72 9 64 7 119 10 52 0 27 5 39 5 98 2 50 4 59 5 59 5 151 7 57 0 83 9 72 5 133 5 30 0 A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion of the data is as follows: 1. Find...

A random sample of 21 adult male wolves from the Canadian Northwest Territories gave an average...

A random sample of 21 adult male wolves from the Canadian Northwest Territories gave an average weight x1 = 96.0 pounds with estimated sample standard deviation s1 = 7.2 pounds. Another sample of 25 adult male wolves from Alaska gave an average weight x2 = 88.6 pounds with estimated sample standard deviation s2 = 7.9 pounds. (a) Categorize the problem below according to parameter being estimated, proportion p, mean μ, difference of means μ1 – μ2, or difference of proportions...

3. Joy Lee’s regular hourly wage rate is $15, and she receives a wage of 2...

3. Joy Lee’s regular hourly wage rate is $15, and she receives a wage of 2 times the regular hourly rate for work in excess of 40 hours. During a June weekly pay period, Joy worked 50 hours. Joy’s federal income tax withholding is $90 and state income tax is $25 and FICA is 8%. Her only voluntary deduction is for retirement savings at $30 per week. Compute the following amounts for Joy’s wages for the current week. 1. Gross...

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours.

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Beth works 45 hours. Beth’s federal income tax withholding is $95, she has no voluntary deductions, and the FICA tax rate is 7.65%. Compute Beth Corbin’s gross earnings and net pay for the pay period.

What is the relationship between the budget set and wage? What is the relationship between the...

What is the relationship between the budget set and wage? What is the relationship between the budget set and nonlabor income? What happen to the budget constant if nonlabor income increases? What happen to the budget constant if wage increase? How is the optimal allocation of leisure and money income determined?

Maria Garza's regular hourly wage rate is $16, and she receives a wage of 1 1/2...

Maria Garza's regular hourly wage rate is $16, and she receives a wage of 1 1/2 times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period, Maria worked 42 hours. Her gross earnings prior to the current week were $6,000. Maria is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $25 per week. a. Compute the following amounts for Maria's wages for the current...

Question