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Refer to your text MROZ data set (posted under the Additional Resources section of our course) and use Excel's regression data analysis tool or State

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Refer to your text MROZ data set (posted under the \"Additional Resources\" section of our course) and use Excel's regression data analysis tool or State to compute the answers to the questions asked. Consider the following model: log(wage) = Bo + B1educ + u (1), where wage is hourly wage and educ is years of schooling. Assume that educ is endogenous (correlated with u). Further assume that motheduc (mother's education) is uncorrelated with u. Assume that educ and motheduc are correlated. Estimate (1) using motheduc as an IV for educ (using only the working women in the sample). You find that the IV estimate of the return to education is %, while the OLS estimate of the return to education is %. (NOTE: Write your answers in number format, with 2 decimal places of precision level; do not write your answer as a fraction. Add a leading minus sign symbol, a leading zero and trailing zeros when needed. Use a period for the decimal separator and a comma to separate groups of thousands. HINT: See Example 15.1.)

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