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Please help me answer these econometrics questions. Its urgent! thank you so much! ECN140 Final 2019 Winter 2. In this question, we are interested in

Please help me answer these econometrics questions. Its urgent! thank you so much!

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ECN140 Final 2019 Winter 2. In this question, we are interested in the effect of completed schooling years on wages. We use a panel dataset about 707 young women, surveyed in 1970 and 1980. We use the following two variables: wage, and grade. The variable wage is the wages (divided by the GNP deflator). The variable grade is the current grade completed (i.e., the years of completed education). (a) (10 points) Use the observations with year = 1970. Consider log(wage) = Bo + Bigrade + Bzgrade2 + u and Elu | grade] = 0. Consider the claim that the effect of grade is zero. Based on the following Stata outputs with some blank entries, write down the test statistic and the critical value. What is the conclusion of the test? In this question, use the significant level a = 5%. gen In_wage = log (wage) gen grade_sq = grade 2 summarize In_wage grade if year == 70 Variable | Obs Mean Std. Dev. Min Max In_wage 707 1. 50342 4092185 . 0240972 2. 683358 grade 707 11. 94201 1. 88952 18 tab year interview year Freq . Percent Cum. 70 707 50 . 00 50. 00 80 707 50. 00 100 . 00 Total 1, 414 100 . 00 reg In_wage grade grade_sq if year == 70 Source | SS df MS Number of obs F (2, 704) Model | 18. 7151068 2 9.35755342 Prob > F Residual 99 . 5115005 704 . 141351563 R-squared Adj R-squared Total | 118. 226607 706 . 167459784 Root MSE In_wage | Coef. Std. Err. t P>It/ [95% Conf. Interval] grade -. 0033106 0341627 grade_sq . 0038525 0014723 _cons | 9798049 . 2040265ECN140 Final 2019 Winter (b) (10 points) Use the observations with year = 1970. Consider log(wage) = Bo + Prgrade + Bograde? + u and E[u | execs] = 0. Consider the claim that the effect of grade on log(wage) becomes larger as the number of grade becomes larger. Based on the above Stata outputs with some blank entries, write down the test statistic and the critical value. What is the conclusion of the test? In this question, use the significant level oo = 5%. ECN140 Final 2019 Winter () (10 points) Use the observations with year = 1970 and year = 1980. Consider log(wageir) = Bo + Prgradeir + Pagrades, + vit for every county i and every year t. (Note that (8,51, 82) in this question is not the same as in the previous question.) Write down the assumption on v;; to apply the fixed effect estimation to estimate (31, 2). ECN140 Final 2019 Winter (d) (5 points) Write down the assumption on grade;; to apply the fixed effect estimation to estimate (B1, B2)

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