wage=B0+B1educ+B2exper+B3tenure+u

.

Wherewageis average hourly earnings,educis years of education,experis years of experience,

andtenureis the years with the current employer.

model.

a. Estimatethis model using STATA andinterpretthe coefficients of your estimated

Which of the independent variables in this model arestatistically significantat the 5%

level? Explain and show all work.

b. What is thehighest levelof significance in which you could reject the null hypothesis

thatexperisnotstatistically significant? Explain and be clear.

Determine ifexperandtenurearejointlysignificant determinants of wage. Explain your

process and be clear.

c. Do you believe the estimates ascertained from this model may bebiased? Why or why

If a researcher desires a percentage change interpretation of the model's estimated

coefficients, whichfunctional form transformationshould be used and why? Rewrite this

regression model with the appropriate transformation.

d. Determine ifexperandtenurearejointlysignificant determinants of wage. Explain your

process and be clear.

e. Do you believe the estimates ascertained from this model may bebiased? Why or why not?

f. researcher desires a percentage change interpretation of the model's estimated

coefficients, whichfunctional form transformationshould be used and why? Rewrite this

regression model with the appropriate transformation.

g.Suppose a researcher is interested in the impact of gender on thereturn to education.

Explain how this researcher can implement a change to this model to produce this

outcome

h. Is there evidence of heteroskedasticity? If so, what are the implications of this

heteroskedasticity?