I- (16 pts) From a local chamber of commerce records, information are gathered about the hourly wage and the number of years of experience from local workers. You are interested in exploring a possible relationship between workers' hourly wages and the number of years of experience. . Write down a model (not an estimated equation) that implies percentage changes (or relative changes) to wages due to absolute (or level) changes to years of experience. Indicate which parameter measures the relative change in wages. (2pts). A random sample of 935 workers provided the following information summaries: Y = In (wage) X = exper EY = 6338.369 EX = 10812 EY2 - 43133.48 EX2 - 142900 EXY = 73330.04 n = 935 b. Use the summarized data provided above to estimate the model: In(wage) = Bo + Bj exper + u, where: wage is the hourly worker's wage, and exper is the number of years of experience for a worker. c. Explain in words what the estimated equation in b. represents. Do the same for (i.e. interpret) each coefficient estimate from b. (3pts). d. Calculate the estimated effect on a worker's wage of 5 additional years of experience. (1pt). Calculate the standard error for each coefficient estimate (3pts). Calculate the coefficient of determination R-Squared, and provide an interpretation for it (2pts). g. With a 5% significance level, is there a significant evidence that years of experience have a significant positive impact on the wage? (state clearly what are the relevant null and alternative hypothesis, and explain also what are the implications from test conclusion). (3pts). h. Provide a 95% interval estimate for the slope and for the intercept coefficients. (2pts)