Answered step by step
Verified Expert Solution
Question
1 Approved Answer
use R package to run the following two non-nested models and interpret the data Exercise 1: Use the PSID1982 dataset which is available is AER
use "R" package to run the following two non-nested models and interpret the data
Exercise 1: Use the "PSID1982" dataset which is available is "AER" package and consider the following two non-nested models: M1: log(wage) = Po + Bieduc + Byexper + Byexper2 + BAweeks + Bymarried + Bogender + B,ethnicity + Bunion + u M2: log(wage) = Bo + Bieduc + Byexper + Byexper2 + BAweeks + Bsoccupation + B6south + B,smsa + Bgindustry + v (a) Compute the J tests for MI vs. M2 and M2 vs. M1, respectively. What is your conclusion? (b) Both MI and M2 can be artificially nested within a larger model. Use an F test for MI versus this augmented model. Repeat for M2 versus the augmented model. What do you concludeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started