The following questions pertain to Jensen's (2010) work on perceived returns to education in the Dominican Republic. In this work, Jensen interviewed eighth graders from local primary schools, asking them 2 hypothetical questions: (1) how much do you think you would earn as an adult (30-40 years old) if you only get a primary school degree? (2) how much do you think you would earn as an adult if you also complete high school? He also asked this question about their peers. After the interview, Jensen's team randomly selected half of the children and read them the following statement: Before we end, I would like to provide you with some information from our study. In January, we interviewed adults living in this community and all over the country. We asked them about many things, including their earnings and education. We found that the average earnings of a man 30 to 40 years old with only a primary school education was about 3,200 pesos per month. And the average income of a man the same age who completed secondary school, but did not attend university, was about 4,500 pesos per month. So the difference between workers with and without secondary school is about 1,300 pesos per month; workers who finish secondary school earn about 41 percent more than those who don't. And people who go to university earn about 5,900 pesos per month, which is about 85 percent more than those who only finish primary school. Finally, the research team revisited the children after 4 years to learn about their schooling outcomes. Here are two tables from that study: TABLE I MEANS, STANDARD DEVIATIONS, AND TEST OF TREATMENT-CONTROL COVARIATE BALANCE All Control Treatment Difference Age 14.3 14.3 14.4 0.02 [0.79] [0.79] [0.79] (0.04) School performance 2.64 2.66 2.62 -0.04 [1.45] [1.46] [1.45] (0.06) Father finished secondary 0.38 0.39 0.38 -0.01 [0.49] [0.49] [0.49] (0.05) Log (income per capita) 8.16 8.17 8.15 0.04 [0.32] [0.31] [0.32] (0.05) Round 1 expected earnings (self)Primary (only) ' ' 3,516 3,548 3,484 64 [884] (116) (124) ' (165) Secondary (only) 3,845 3,884 3,806 -78 7 [1,044] (132) (145) (191) Implied perceived returns (self) 329 336 322 , 14 [403] (25) (27) (36) . Round 1 expected earnings (others) Primary (only) 3,478 3,509 3,447 62 , . [863] (112) (120) f (160) Secondary (only) 3,765 3,802 3,728 _ 73 [997] (126) (143) (185) Implied perceived returns (other) 287 293 281 12 ' [373] (23) (29) (36) TABLE V EFFECTS or THE INTERVENTION 0N EXPECTED Remus AND SCHOOLING Full sample Poor households Least poor households (1) (2) (3) (4) (5) (3) (7) (3) (9) (10) (11) (12) Returned Finished Years of Perceived Returned Finished Years of Perceived Returned Finished Years of Perceived next year school schooling returns next year school schooling returns next year school schooling returns Treatment I 0041* 0.023 0.20\" 367\"\" 0.006 10.01 0.037 344'\" 0.072' 0.054' 0.33'\" 386\"\" (0.023) (0.020) (0.082) (23) (0.034) (0.026) (0.11) (41) (0.038) (0.031) (0.12) (41) Log 0.095\" 0.23\"\" 0.79\"" 29.0 0.054 0.26'" 0.69'\" 188\" 0.047 0.10 0.51 23 (inc. per capita) (0.040) (0.044) (0.16) (47) (0.063) (0.062) (0.23) (87) (0.12) (0.13) (0.45) (133) School ' 0.011 0.019\" 0.086\" 0.74 0.001 0.015 0.064 19.5 0.025" 0024* 0.10\" 8.2 performance (0.010) (0.009) (0.034) (14) (0.014) (0.012) (0.048) (13.5) (0.013) (0.012) (0.048) (22) Father 0.074\" 0.050' 0.26\" 24 0.056 0.019 0.16 29.1 0.096" 0.096\" 0.36\" 3.8 nished see (0.030) (0.030) (0.12) (32) (0.045) (0.043) (0.18) (62) (0.038) (0.038) (0.14) (40) Age 0.010 0.004 0.006 42\" 0.042 0.002 0.071 46 0.005 0.005 0.025 35 (0.016) (0.015) (0.059) (21) (0.030) (0.019) (0.088) (32) (0.025) (0.035) (0.087) (29) R2 .016 .040 ,049 .090 .007 .019 .014 .094 .020 .020 .029 .090 Observations 2,241 2,205 2,074 1,859 1,055 1,055 1,007 920 1,056 1,056 1,002 939 Looking at the first table, briefly explain how the implied perceived returns to secondary school are calculated.Comment on the differences between what the children perceive adult earnings to be, and the reality. According to the table, the effect of the statement was to increase schooling by 0.023 V . The effect is positive for rich , while for poor there is a null effect on schooling.Identify the correct statement below. 0 Poor students did not learn anything about adult income. 0 Students learned something about adult income. Information increased perceived returns by 367 pesos. The increment was larger for poor students 0 Students learned something about adult income. Information increased perceived returns by 367 pesos. The increment was similar for rich and poor students 0 Students did not learn anything valuable about adult income. According to the tables, treated children increased the implied perceived returns by: (hint: I'm asking you for the magnitude of the effect here). Q 41% 0 Cannot be determined. 0 3.67% 0 1110/0 Children who received the information treatment: 0 increased the likelihood of returning to school the following year by 4.1% O 0 increased the likelihood of returning to school the following year by 4.1 p.p. This study supports the hypotheses of: O supply siders O demand siders Neither