Consider the regression in equation (13.23). (a) Demonstrate, either with confidence intervals or two-tailed hypothesis tests, that
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Consider the regression in equation (13.23).
(a) Demonstrate, either with confidence intervals or two-tailed hypothesis tests, that
a, bâ•›1, and bâ•›2 are statistically significant.
(b) Verify the predicted changes in annual earnings at 7, 11, 15, and 17 years of schooling.
(c) Use equation (13.22) to verify that minimum predicted earnings occur at approximately 5.63 years of schooling.
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