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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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