obtained a sub-sample of 1744 individuals from the Current Population Survey (CPS) and are interested in the relationship between weekly earnings and age. The regression, using heteroskedasticity-robust standard errors, yielded the following result:    = 239.16 + 3.75× Age, R2 = 0.15, SER = 287.21.,   where Earn and Age are measured in dollars and years respectively.   Interpret the intercept?   Interpret the slope coeffici

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.CR: Chapter 1 Review
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You have obtained a sub-sample of 1744 individuals from the Current Population Survey (CPS) and are interested in the relationship between weekly earnings and age. The regression, using heteroskedasticity-robust standard errors, yielded the following result:

 

 = 239.16 + 3.75× Age, R2 = 0.15, SER = 287.21.,

 

where Earn and Age are measured in dollars and years respectively.

 

  • Interpret the intercept?

 

  • Interpret the slope coefficient

 

  • b) Is the effect of age on earnings large?

 

  • The average age in this sample is 37.5 years. What is annual income in the sample?

 

       (e) Interpret the measures of fit.

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