A researcher in Namibia eatimuted a wage equation for small cnterprises using rocent data from the Namibia Labor Foree Survey (LFS) for year 2018. The dependeat variable (In_wage) is the logarithm of waye. The explanatory variables are as follows: age (agev), age squared (ase_2), type of neighbortond in which employed is living primary, l rocatianial edtecation, 2 socondary, 3 highter), working time (w_time 0 parttime, I full-time), interaction between gender and working time and marital status (anatus: 0 single, t married, 2 widowhuifower, 3 divornd). Significance level to be used in teating a=0.05 and teat results should be justified with respective p-values. The empirical econometric model was specified as follows; Inwage4=0+1age+2age2+3rural+4sex+1educ+4wtime+3sexwtime+nstatus+4 Uning the estimation results as reported below, aaswer the following question. 1. Are the explunatory variables jointly significant? Explain. [4] 2. Give an interpretation to coefficient of determination. [4] 3. What would you say about the constant ters in the miedel and the constant term in the empirical rasults an the table? [5] 4. Verify which explanatory variables are statistically significant, while stating their levels of significance. [12] 5. Interpret the results as the tahle below. |25| 6. What is the importance of adding the square of age (age2) and the interaction term of gender and working time (sex* time) in the model above? [8] 7. Is the heteroscedasticity problem present in the estimated results? Explain [4] 8. Is the error term normal in the estimated model? Explain [4] 9. Check whether the linear functional form of the model is valid. Explain. [4] 10. If estimuted model does not satinfy the anamption of CLRM: a. which nsumptions of CL.RM are invalid? [5] b. What ennsequetices does it have on statistical inference for this model? [10] c. bow the problems indicated by diagnontio leats could be nolved? [15] 2 \begin{tabular}{|c|c|c|c|} \hline Source I & 53 & df & ins \\ \hline Wodel I & 221.507901 & 12 & 17+625655 \\ \hline Mesidual & 291.740612 & 2954 & .149304203 \\ \hline Total & 503.24$32 & 2966 & .255975748 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline Number of & 1 \\ \hline ri 12 . & 218.0 \\ \hline Preb > r & 0.0000 \\ \hline k-squared & 0.4203 \\ \hline hdy h-squared & =0.4167 \\ \hline Root NGE & .3864 \\ \hline \end{tabular} white's general seac atasistis: Jarque-Berra test statiotic: - Mansey Rest: teat atatistie: chi2tis=284.25 p-vatue =0.000 Chta (70) = 501.24 p-value = 0.000 r {3,295:1=44,72 p-value =0.000