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This problem assumes you're using R-Studio and the Woolridge package has the data set wage1. All the information needed to solve this problem is given,
This problem assumes you're using R-Studio and the Woolridge package has the data set "wage1". All the information needed to solve this problem is given, so please don't respond saying you need more information. I have not been able to find anyone yet who could solve this problem and I need help to understand the solution to the problem. If you're able to help that would be amazing!
Question 1 Use the data in wagel" of Wooldridge for this question. In this dataset, variable wage is the individual's hourly wage, a dummy variable married is equal to 1 for a married individual and is zero otherwise, exper measures experience, tenure measures tenure at a job, and female is a dummy variable that is equal to 1 if the person is a female and zero otherwise. a a) Write down the simple regression (meaning, you have one explanatory variable) popula- tion model that can be used to estimate the effect of marriage on wages. (1 point] b) Estimate the simple regression model and report the results in an equation form including the parameter estimates, standard errors, sample size and the adjusted R-squared value. (2 points) c) Interpret the coefficient estimate on married". [1 point] d) Interpret the adjusted R Hint: the adjusted RP is interpreted the same way as the regular R?. (1 point] e) Test the hypothesis that marriage has no effect on wages (make sure to state the null and alternative hypotheses, the significance level and whether you reject or do not reject the null hypothesis). (3 points) f) Explain why you should not interpret the estimated effect of marriage on wages from the simple regression as a causal effect. (2 points) g) Extend your model to be a multiple regression model that controls for experience, tenure and female (see variable descriptions in the beginning of this question). Write down the estimation results in an equation form including the parameter estimates, standard errors, sample size and the adjusted R-squared. (2 points) h) How does controlling for experience, tenure and gender affect the estimated effect of marriage on wages? Explain your answer, including why the estimated effect changed. (2 points) i) Use an F test to test the null hypothesis that experience, tenure and female jointly have no effect on wages (state the null and alternative hypotheses, the significance level and whether you reject or do not reject the null hypothesis). [3 points)Step by Step Solution
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