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Suppose that average worker productivity at manufacturing firms ( productivity ) depends on two factors, average hours of training and average worker ability. Productivity =
Suppose that average worker productivity at manufacturing firms (productivity) depends on two factors, average hours of training and average worker ability.
Productivity = B0 +B1training + B2ability +u
You were able to obtain the data on workers' productivity and amount of training that they have received, but you don't have a way of measuring their ability.
a)With the available data, what model will you be estimating?
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