1. Table 1 reports the estimates of the effects of personal characteristics on a monthly wage. The variable birth order measures order of birth, i.e. 1"1 child, 2""1 child etc. Use this table to answer the following questions: a} How many different regressions are estimated in Table 1? b} Write down the estimated regression for column 6 and make sure to name variables in a meaningful way. c} Construct 95% condence intervals for all coefcients in column 6. d} Interpret each coefficient in column 6. (Hint: Do not forget to state if the effect is statistically different than 0). e) The total variation in monthly wage is 138787905. Calculate adjusted R2 for each regression. f} What is predicted wage for an individual who has 11 years of experience, has 12 years of education, works 40 hours per week, has 2 years of experience with current employer, is a 2""I child in family, has two siblings, is married, has a father who has 8 years of education, is not black, does not live in south, and lives in metropolitan area? g} Compute residual for the individual from previous question given that the observed monthly wage is $759. h} Using column 6, what is the difference in wages between single individual with 10 years of experience and a married individual with 8 years of experience, all else equal? i) In the column 6, are the effects of being black, living in the south and living in metropolitan jointly important variables in determining monthly wage? (Hint: You can use R2 to test this hypothesis). ECON 4400 j} In the column 5, are the effects of being black and living in southjointly important variables in determining monthly wage? (Hint: You can use R2 to test this hypothesis}. k) Do explanatory {independent} variables in column 6 jointly explain monthly wages? (Hint: You can compute RSS from the unrestricted model using R2 and T55 from part e.) ECON 4400 Table 1. Regression results of the effects of personal characteristics on monthly earnings {1} l2} l3} l4} l5} {6} monthly earnings monthly earnings monthly earnings monthly earnings monthly earnings monthly earnings years of work 1435'" 13.22'" 12.54'" 15.30'" 15.25'" 15.50'" experience {3.25) {3.41) {3.33) {3.39) {3.33) {3.79) yea rs of education ?4.39"' 3091'" ?2.03"' 62.31'" 62.3?\" 59.64'" {5 30) {5 73) {5 72) {7.75) {7 70) {7 54) average weekly hours -1.?3 -1.32 -1.60 -3.58 -3.85 4.13' {1.70) {1.30) {1.79) {2.00) {2.00) {1.95) years with current 3.13\" 7.55\" 7.00\" 3.93 3.31 4.15 employer {2.50) {2.59) {2.57) {2.91) {2.91) {2.34) birth order -12.52 -11.59 -15.55 -15.03 -13.34 {10.01) {9.92) {11.73) {11.73) {1152) number of siblings -3.15 -3.33 -0.81 2.?9 5.65 {7.03) {5.97) {7.77) {3.00) {7.33) :1 if married 130.33'\" 179.09'" 173.90'" 179.30'\" (43.59) (47.40) (47.22) (45.13) father's education 1753'" 14.93" 12.52\" in years {4.35) {4.90) {4.31) :1 if black -123.12' 453.31" (54.53) (53.33) =1ifliye insouth -55.12 -33.42 (31.12) (30.53) :1 if live in 179.55'\" Metropolitan area {31.19) Constant -205.47 34.33 -242.33 -237.75 450.03 -223.27 {127.51) {142.52) {145.21) {154.27) {155.33) {151.91} R-squared 0.1453 0.1529 0.1593 0.1323 0.1944 0.2325 ECDN 4400 N. of cases 680.0000 680.0000 680.0000 680.0000 680.0000 680.0000