Question
Suppose that a researcher considers the following regression model: (2) WAGE = 0 + 1EDUC + 2EXP + where WAGE is the hourly wage, EDUC
Suppose that a researcher considers the following regression model: (2) WAGE = 0 + 1EDUC + 2EXP + where WAGE is the hourly wage, EDUC is years of education and EXP is years of previous work experience.If the researcher wants to test whether an additional year of work experience has the same marginal effect on WAGE as an additional year of education, which of the following equation s/he needs to estimate to test this hypothesis? a. WAGE = 0 + 1EDUC + b. WAGE = 0 + 1EXP + c. WAGE = 0 + 1(EDUC + EXP) + d. WAGE = 0 + 1EDUC + 2EXP + 3(EDUC + EXP) + 13. Suppose that a researcher estimated model (2) and the restricted model appropriate for testing the hypothesis stated in Q12.If the two models were estimated with a sample of 70 observations, which of the following critical value should s/he use to test the hypothesis at a 10% significance level?
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