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Question 1 (20 marks) The Corona virus pandemic has reshaped the world's economy, moving people from face to face to online interactions and work. To
Question 1 (20 marks) The Corona virus pandemic has reshaped the world's economy, moving people from face to face to online interactions and work. To garner a better understanding of the issue, you collected data across Jamaica and the following regression was estimated: OE = 0.10+ 0.16 V + 0.21 LD +.05 IT - 0.02 Rural (.034) (.221) (.318) (.001) (.328) n = 45, R- = 0.32 where; employment online (OE), virus spread per day (V), internet usage (IT), lock down measures (LD) and a location dummy (Rural); 1 for persons living in the rural area and 0 otherwise. Standard errors in parenthesis. a) Test the hypothesis that people living in the rural areas are less likely to work online. (7 marks) b) All other factors being equal, test the hypothesis that an increase in the spread of the virus per day has no impact on a person's move to work online. (7 marks) c) Do lock down measures increase your ability to work online? Test the hypothesis
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