The following data from a random sample of individuals that are 25 years old. Note, wage is the hourly earnings in US dollars and educ is years of education. i 1 2 3 4 wage 12.18 12.18 20.09 7.39 educ 13 11 16 12 Consider the following model: In(wage)-Bo+B₂educ+u. Calculate the estimate of B₁. Round your answer to two decimal places.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The following data is from a random sample of individuals who are 25 years old. Note, "wage" is the hourly earnings in US dollars, and "educ" is the years of education.

| i | wage | educ |
|---|------|------|
| 1 | 12.18 | 13   |
| 2 | 12.18 | 11   |
| 3 | 20.09 | 16   |
| 4 | 7.39  | 12   |

Consider the following model: \( \ln(\text{wage}) = B_0 + B_1 \text{educ} + u \).

Calculate the estimate of \( B_1 \). Round your answer to two decimal places.
Transcribed Image Text:The following data is from a random sample of individuals who are 25 years old. Note, "wage" is the hourly earnings in US dollars, and "educ" is the years of education. | i | wage | educ | |---|------|------| | 1 | 12.18 | 13 | | 2 | 12.18 | 11 | | 3 | 20.09 | 16 | | 4 | 7.39 | 12 | Consider the following model: \( \ln(\text{wage}) = B_0 + B_1 \text{educ} + u \). Calculate the estimate of \( B_1 \). Round your answer to two decimal places.
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