This exercise is based onEmpirical Exercise 5.1that examines the relationship between a worker's age and earnings. Instead of the full dataset, you will analyze a subset of 500 individuals that you can download atthis link. Open the file in Excel and estimate the following linear regression model:

AHE = beta0 + beta1 * AGE + error

where AHE and AGE refer to the (average hourly) earnings and age of an individual (and there are 500 individuals in your sample). The unit of AHE is dollars per hour and the unit of AGE is years. Answer the following questions:

Calculate the test statistic for the null hypothesisH0: beta1 = 0against the alternativeH1: beta1 not= 0: t =

Is AGE statistically significant at 10%? (type YES or NO) at 5%? and 1%?

What is the p-value associated with the coefficient's t-statistic? (if the pvalue is smaller than 0.01 type 0.00)

Construct a 90% confidence interval for the slope coefficient of AGE: (,)

It can be argued that AGE should have a positive effect on earnings (more experience?). Test this hypothesis by performing a one-sided test thatH0: beta1 <= 0againstH1: beta1 > 0. The t-statistic in this case is and the 1% critical value is so that the conclusion for the null hypothesis H0 is (type REJECT or DO NOT REJECT) .

ahe	age
38.4615402	33
21.6346149	27
24.0384617	27
12.5	27
10.475709	28
12.0192308	27
4.80769253	31
9.61538506	26
11.25	28
7.21153832	33
23.333334	32
12.3076925	28
16.8269234	31
13.4615383	25
16.3471146	26
27.2435894	30
17.9197121	25
7.21153832	27
12.0192308	33
9.61538506	26
19.2307701	26
9.7435894	30
21.1538467	29
48.0769234	28
12.9807692	28
14.4230766	29
32.6923065	31
16.8269234	32
13.3136091	28
19.2307701	29
17.3073082	30
22.1153851	25
18.0769234	33
14.4230766	31
8.11965847	25
20.1923084	28
5.78021956	28
19.7115383	27
17.25	31
29.9145298	34
24.295433	26
16.8269234	26
35.0427361	30
29.8076916	33
10.2564106	26
22.1153851	30
15.3846149	29
21.6346149	33
23.0769234	28
37.6923065	33
18.75	30
12.5	26
20.8791218	34
13.4615383	34
24.0384617	27
9.8290596	33
12.0192308	32
33.6538467	31
19.7115383	27
5.28846169	26
18.2692299	25
23.5042744	30
43.2692299	28
19.2307701	31
10.1960783	26
14.25	32
18.2692299	33
34.6153832	32
16.8269234	30
19.2307701	27
16.927084	30
18.8461533	33
4.80769253	27
10.5769234	25
31.25	25
17.3076916	30
16.3461533	27
19.2307701	28
16.8269234	25
8.09716606	28
18.1490383	29
17.9487171	27
20.6730766	26
17.7884617	30
15.0240383	33
10.2596149	27
46.6346169	34
43.2692299	32
5.28846169	26
12.9370632	34
16.8269234	28
14.4230766	27
9.61538506	25
17.3076916	31
8.65384579	32
11.5384617	30
28.8461533	28
15	27
24.0384617	34
20.1923084	26
12.5	34
32.051281	33
18.75	25
25	32
16.0256405	30
15.3846149	33
21.6346149	31
14.4230766	26
6.25	25
9.10000038	31
52.8846169	26
62.5	33
11.5384617	26
8.39160824	25
39.5604401	33
9	29
10.3550301	32
21.6346149	31
16.666666	27
10.5778847	31
20.7489872	34
22.6923084	29
8.65384579	31
12.5	33
16.8269234	27
31.25	31
33.6538467	32
18.2211533	34
16.8269234	33
19.2307701	28
16.8269234	30
12.8205128	32
6.59340668	29
14.4230766	34
18.6813183	32
4.80769253	34
11.5384617	32
17.9487171	27
17.1875	34
23.0769234	32
13.7980766	28
12.1394234	25
11.4035091	30
19.2307701	33
12.0192308	30
12.0192308	25
12.5	29
43.2692299	32
28.8461533	31
9.13461494	25
13.7362633	29
34.1880341	28
7.21153832	31
12.0192308	31
14.9038458	25
16.8269234	34
12.0192308	30
21.1538467	26
7.21153832	25
9.61538506	29
5.82912111	29
14.4230766	30
12.0192308	28
4.61538458	26
7.21153832	32
34.2857132	28
17.708334	29
42.5	32
13.187912	34
11.0576925	30
28.8461533	28
17.7884617	29
16.3461533	26
17.094017	28
19.2307701	30
21.6346149	33
9.61538506	29
23.0769234	32
9.79166699	30
14.4230766	32
37.5	34
12.0192308	28
11.0576925	28
22.2222214	30
10.3550301	31
12.3626375	31
8.89423084	27
11.0576925	30
20.5128212	34
15.3846149	34
34.6153832	29
15.3846149	32
30.4114494	34
18.5096149	28
17.3076916	30
21.0622711	26
23.0769234	32
11.5384617	29
16.8269234	26
12.2549019	26
10.9890108	31
16.3461533	26
9.61538506	29
13.9423075	27
8.41346169	31
18.8461533	27
10	32
14.126442	25
12.9807692	25
17.7884617	26
11.5384617	33
30.7692299	27
13.0769234	34
10.5769234	26
26.9230766	27
20.1183434	26
24.0384617	27
15.8360577	33
8.17307663	27
48.0769234	31
26.4957256	34
30.2884617	26
26.4423084	34
12.5	26
19.2307701	33
7.21153832	26
32.9670334	29
11.0576925	25
18	27
9.34065914	32
14.0224361	28
24.0384617	28
15.3846149	30
17.5824184	31
19.2307701	27
12.0192308	27
26.4423084	26
15	34
33.1730766	30
5.76923084	34
15.3846149	26
12.9807692	28
11.8589745	29
31.5	25
28.8461533	28
17.5585289	27
64.9038467	34
11.8343191	29
13.8461542	29
7.08502007	32
7.42857122	34
40.3846169	29
33.6538467	31
12.0192308	33
10.0961542	32
20.0320511	30
46.6346169	34
19.2307701	28
18.75	31
24.4090233	26
36.0576935	27
8.65384579	27
9.23076916	32
20.6730766	30
16.6247997	33
22.0352573	31
32.051281	31
26.9230766	25
12.0192308	28
4.61538458	25
26.9230766	30
7.63701916	32
12.0192308	26
29.4871788	32
25.9615383	31
19.2307701	26
32.051281	33
19.2307701	30
7.59109306	25
11.5384617	30
19.2307701	29
16.3461533	31
20.6730766	27
20.1923084	26
26.1437912	25
13.9423075	26
67.3076935	34
12.5	27
19.2307701	33
46.1538467	31
15.5982904	25
26.4423084	33
4.44444466	28
10.5769234	28
20.1923084	34
38.4615402	34
16.4835167	28
26.4423084	29
19.2307701	30
55.2884598	33
10.6634617	26
19.2307701	27
9.13461494	27
18.75	33
8.65384579	30
10.416667	27
11.979167	32
14.5348835	28
33.6538467	32
28.8461533	29
19.2307701	29
28.8461533	32
12.2549019	25
18.2692299	28
22.5563908	26
17.7884617	34
28.8461533	26
12.0192308	26
4.80769253	29
12.0192308	30
8.65384579	27
24.8557701	30
25	28
11.5384617	32
9.8290596	33
24.7863255	27
38.4615402	33
29.9145298	29
19.2307701	34
14.4230766	29
42.3076935	33
9.34065914	28
33.8004799	32
30.0480766	34
9.5	27
7.21153832	32
16.3461533	25
21.9780216	31
9.61538506	28
7.5	25
17.3076916	26
7.21153832	32
18.2692299	25
20.3846149	33
16.7307701	30
7.21153832	33
20.1923084	26
9.61538506	25
13.6999998	32
19.2307701	34
27.2435894	32
7.63701916	32
17.521368	30
8.65384579	26
13.4640522	28
17.094017	28
21.6346149	31
24.0384617	27
24.0384617	27
26.7094021	29
12.5	33
24.0384617	30
21.3675213	34
33.8942299	26
18.4615383	32
10.6837606	27
17.6282044	32
31.25	34
22.2222214	29
5.82912111	29
24.5192299	34
20.1923084	32
23.5	34
12.9807692	27
11.9230766	30
4.28571415	25
27.3076916	28
7.59109306	33
10.3550301	32
13.4615383	26
19.2307701	25
22.1153851	26
25	34
33.6538467	28
13.4615383	26
14.9038458	32
15.8663464	33
13.636364	25
21.1538467	31
13.4615383	27
13.1701632	30
13.4615383	29
20.6730766	25
10.2564106	28
24.0384617	25
12.0192308	34
37.5	33
14.4230766	27
21.6346149	25
18.0288467	28
20	32
14.9038458	25
34.6153832	34
17.521368	34
28.8461533	33
20.1923084	26
9.61538506	26
22.1153851	26
36.7788467	34
35.7692299	26
16.0384617	25
12.0192308	31
17.776495	28
28.8461533	32
33.6538467	32
17.5	25
4.47552443	25
13.9423075	31
5.76923084	33
48.0769234	30
13.9423075	33
12.5	31
12.0192308	26
25	30
34.6153832	30
9	33
17.094017	28
13.7019234	30
15.3846149	31
7.70860052	25
25	27
13.4615383	29
23.0769234	30
20.9401703	32
13.4615383	26
9.61538506	28
8.65384579	32
18	28
15.3846149	34
34.6153832	28
18.2692299	25
28.8461533	31
19.2307701	32
20.6730766	32
14.895833	28
21.6346149	31
11.0576925	30
21.1538467	28
3.84615374	27
9.56730747	30
9.61538506	30
38.4615402	34
19.2307701	30
54.9450531	32
7.21153832	28
4.32692289	29
13.636364	30
17.7884617	28
32.7797203	33
19.9519234	27
14.6153851	29
13.4615383	34
33.3333321	32
9.61538506	26
4.80865383	30
30.7692299	29
22.1153851	31
12.5	30
16.179945	32
24.7863255	28
17.3076916	29
22.1153851	26
9.79166699	30
11.0576925	31
6.82692289	25
9.61538506	28
15.3846149	29
14.4230766	34
20.1923084	31
14.47855	32
17.7884617	34
10.606061	33
14.4230766	32
18.75	25
7.5	29
21.6346149	32
19.7115383	32
19.2307701	31
21.6346149	29
20.1923084	33
18.8034191	25
24.7863255	29
12.5223618	28
16.3461533	34
9.89583302	27
13.8888893	31
2.76923084	34
32.5	30
14.9038458	25
31.25	28