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(a) Streamline the regression given in Table 1, that is, eliminate all variables that are not significant at the 15 percent level. Write down the
(a) "Streamline" the regression given in Table 1, that is, eliminate all variables that are not significant at the 15 percent level. Write down the new regression equation and check whether the specification satisfies the assumptions of linearity and homoskedasticity. (b) Compare the coefficient of AGE in the new and the old regressions. What can explain the sign (direction) of the change in this estimator? Discuss
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