Question
As a scholar of labour economics, you have inspired the possibility of education being a significant determinant of wages Upon learning about learning regression
As a scholar of labour economics, you have inspired the possibility of education being a significant determinant of wages Upon learning about learning regression analysis using matrices, you realize that you are able to predict average annual wage based on the years of schooling. The table below shows your data set Number of Observations Wages 1 2 3 4 5 6 7 8 9 10 Required. (0) (HI) (iv) 4.4 5.7 5.9 7.3 7.1 6,5 7.8 73 11 10.6 Education 6 7 8 9 10 11 12 13 14 15 Compute the OLS matrix estimators of [10 Marks] Calculate the coefficient af determination and interpret the results [5 Marks] Find the variance-covariance of [5 Marks] Given the vector of residue squares: e = y - XB a) Use the OLS estimator to derive the symmetric residue maker. [3 Marks] b) Show that your established residual maker is an Idempotent matris [2Marks] [Total: 25 Marks]
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To compute the OLS matrix estimators for the given data we first need to organize the data into a matrix format The matrix X will contain the educatio...Get Instant Access with AI-Powered Solutions
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Step: 2
Step: 3
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