Suppose that a researcher, using data on the number of years of education a person has received and their annual earnings from 150 individuals, estimates the OLS regression: Earnings=40.68 + 1.46 Education, where Earnings is measured in thousands of dollars. If the number of years of education a person receives increases by three, on average, the annual earnings of the individual would (1) by $ Note: Report answer in dollars. Suppose that Meghan wants to earn at least $65,000 annually and she has recently earned a Bachelor's degree in Economics, completing 16 years of education in total. She is considering whether she should pursue a Master's degree as well, which would involve studying for two more years. Which of the following statements is true? OA. She could have reached her income target without a Bachelor's degree by receiving education for only 12 years. O B. She is able to reach her income target with her current level of education. OC. She will reach her incom target once she spends more years earning a Master's degree. O D. She will not able to reach her income target even after spending two more years earning a Master's degree.

Suppose that a researcher, using data on the number of years of education a person has received and their annual earnings from 150 individuals, estimates the OLS regression: Earnings=40.68 + 1.46 Education, where Earnings is measured in thousands of dollars. If the number of years of education a person receives increases by three, on average, the annual earnings of the individual would (1) by $ Note: Report answer in dollars. Suppose that Meghan wants to earn at least $65,000 annually and she has recently earned a Bachelor's degree in Economics, completing 16 years of education in total. She is considering whether she should pursue a Master's degree as well, which would involve studying for two more years. Which of the following statements is true? OA. She could have reached her income target without a Bachelor's degree by receiving education for only 12 years. O B. She is able to reach her income target with her current level of education. OC. She will reach her incom target once she spends more years earning a Master's degree. O D. She will not able to reach her income target even after spending two more years earning a Master's degree.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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