# Econometrics

1. Using data from 2013 on 64 black females, the estimated log-linear regression between WAGE (earnings per hour, in \$) and years of education, EDUC is ln(WAGE d ) = 1.58+0.09EDUC. The reported t-statistic for the slope coefficient is 3.95.
(a) Test at the 5% level of significance, the null hypothesis that the return to an additional year of education is equal to 8% against the alternative that the rate of return to education is more than 8%. In your answer, show (i) the formal null and alternative hypotheses, (ii) the test statistic and its distribution under the null hypothesis, (iii) the critical value from the t table and the rejection region (in a figure), (iv) the calculated value of the test statistic, and (v) state your conclusion, with its economic interpretation. [Hint: From the information you should be able to figure out the standard error of the slope coefficient (se(b2)). Then, with the calculated standard error, you should be able to find the t statistic.]
(b) Construct a 95% interval estimate for the return to an additional year of education and state its interpretation.

Don't use plagiarized sources. Get Your Custom Essay on
Econometrics
Just from \$10/Page

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.