Question: You have data on salaries and years of education for ten individuals as presented below: Individual Wage Education 1 60 12 2 103 17

You have data on salaries and years of education for ten individuals as presented below: Individual Wage Education 1 60 12 2 103 17 69 14 85 19 37 14 98 16 AWN 3 4 5 6 7 8 9 10 24 68 56 64 11 15 13 14 (a) Use the data above to estimate, using Ordinary Least Squares, the parameters of the model salary: Bo + Bieducation, + 6 = In this model i indicates the ith individual and, is the th error term. Be sure to explain the method you use to obtain your estimates and show details of your calculations. [15 MARKS] (b) Calculate the R of the model estimated in part (a). Be sure show details of your calculations.

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