You collect data on unemployment percentages and minimum wages for 500 random cities in the U.S. in 2015, and then you estimate the following OLS regression: Unemployment_i=2.3+0.4MinimumWagei where unemployment percentages range from 4%-20% and minimum wages range from $0-$25 per hour across cities in your sample. Your estimation results show that SE(betaOhat)=0.9 and SE(beta1hat)=D0.13. Consider the results from the sample regression function to answer the following questibn: As a city's minimum wage increases by $1 per hour, unemployment... O Decreases by 2.7% O Increases by 1.9% O Increases by 0.4% O Increases by 2.7% O Doesn't change at all. O Decreases by 0.4% O Not enough information is provided.
You collect data on unemployment percentages and minimum wages for 500 random cities in the U.S. in 2015, and then you estimate the following OLS regression: Unemployment_i=2.3+0.4MinimumWagei where unemployment percentages range from 4%-20% and minimum wages range from $0-$25 per hour across cities in your sample. Your estimation results show that SE(betaOhat)=0.9 and SE(beta1hat)=D0.13. Consider the results from the sample regression function to answer the following questibn: As a city's minimum wage increases by $1 per hour, unemployment... O Decreases by 2.7% O Increases by 1.9% O Increases by 0.4% O Increases by 2.7% O Doesn't change at all. O Decreases by 0.4% O Not enough information is provided.
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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Transcribed Image Text:QUESTION 1
You collect data on unemployment percentages and minimum wages for 500 random cities in the U.S. in 2015, and then you estimate
the following OLS regression:
Unemployment_i=2.3+0.4MinimumWage i
where unemployment percentages range from 4%-20% and minimum wages range from $0-$25 per hour across cities in your sample.
Your estimation results show that SE(betaohat)=0.9 and SE(beta1hat)=D0.13. Consider the results from the sample regression function
to answer the following questibn:
As a city's minimum wage increases by $1 per hour, unemployment ...
O Decreases by 2.7%
O Increases by 1.9%
O Increases by 0.4%
O Increases by 2.7%
O Doesn't change at all.
O Decreases by 0.4%
O Not enough information is provided.
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