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The model below relates an individual's wage to a number of variables: wage, Bo + Bmarried; + Beduc; + B3exper; + Baexpersq; + .

The model below relates an individual's wage to a number of variables: wage, Bo + Bmarried; + Beduc; + B3exper; + Baexpersq; + . = Here wage, is the wage of the ith individual, married, is a dummy variable, taking a value of 1 if the ith individual is married, educ, is their years of education completed, exper, is their years of experience and expersq, is its square. (a) Explain how a t-test can be used to test the null hypothesis that an extra year of education has the same effect as being married on the wage of an individual. [10 MARKS] (b) Describe how you can test whether or not the level of experience of the ith individual has any impact on their wage, based on the model presented above.

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