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You have obtained a sample of 14,925 individuals from the Current Population Survey (CPS) and are interested in the relationship between average hourly earnings and

You have obtained a sample of 14,925 individuals from the Current Population Survey (CPS) and are interested in the relationship between average hourly earnings and years of education. The regression yields the following result: Average hourly earn = -4.58 + 1.17 (years of edu) R2 = 0.182 SER = 9.3 Question 16-1 (15 points): Is the effect of education on earnings large? Question 16-2 (10 points): The average years of education in this sample is 13.5 years. What is mean of average hourly earningsinthesample?

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