Based on the regression estimate in Problem 4, evaluate the statistical significance of the estimated coefficients in
Question:
Based on the regression estimate in Problem 4, evaluate the statistical significance of the estimated coefficients in the regression.
Problem 4
Suppose you have information on which of the 13 randomly selected teenage workers in the fast-food industry worked part-time and which worked fulltime.
Variable Fi is equal to 1 if the worker is employed full time, and it is equal to zero otherwise. With this information, you estimate the following relationship between wages, age, and full-time employment:
a. How much is a 20-year-old who works full time predicted to earn based on this estimate?
b. How much is a 20-year-old who works part time predicted to earn based on this estimate?
Step by Step Answer:
Modern Labor Economics Theory And Public Policy
ISBN: 9780132540643
11th Edition
Authors: Ronald Ehrenberg, Robert Smith