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Suppose you have information on teenage workers that worked either full- or part-time in the fast-food industry. Variable F i is equal to 1 if
Suppose you have information on teenage workers that worked either full- or part-time in the fast-food industry. Variable Fi is equal to 1 if the worker is employed full time, and zero otherwise. Variable Aiis the individual's age in years.With the this information, you have estimated the following equation for earnings based on wages, age, and employment status:
Wi = -0.6 + 0.7Ai + 0.8Fi
- How much is a 18-year-old who works full-time predicted to earn based on this estimated equation?
- How much is an 18-year-old who works part-time predicted to earn based on this estimated equation?
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