Refer to Example 2.1 on years of schooling and average hourly earnings. The data for this example are given in Table 2-5 and the regression results are presented in Eq. (2.21). For this regression
a. Obtain the standard errors of the intercept and slope coefficients and r2.
b. Test the hypothesis that schooling has no effect on average hourly earnings. Which test did you use and why?
c. If you reject the null hypothesis in (b), would you also reject the hypothesis that the slope coefficient in Eq. (2.21) is not different from 1? Show the necessary calculations.