Question 4 (10 marks): Suppose that you have collected data on teenage workers in the fast-food industry, and that you have performed various regression analysis. Suppose that a regression yields the following results: +0.3 A, (0.1) Where W is the hourly wage rate (in dollars) and A is the age (in years). The standard error is in parentheses. A second regression yields this estimate: -1 +0.3 Ai - (a) How much is a 20-year-old predicted to earn based on the first regression? (b) Are you confident that wages actually rise with age? Why? (c) How much is a 20-year-old predicted to earn based on the second regression? Suppose you have collected information on whether teenage fast-food workers worked part time and which worked full time. The variable F 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 regression (the standard error are in parentheses). WI = -0.5 + 0.25 Ai +0.756 (0.10) (0.10) (d) How much is a 20-year-old who works full time predicted to earn based on this regression estimate? (e) How much is a 20-year-old who works part time predicted to earn based on this estimate? (f) Evaluate the 'significance' of the estimated coefficients in the regression?