Question: Take the cps09mar dataset (full sample). (a) Estimate a 6th order polynomial regression of log(wage) on experience. To reduce the ill-conditioned problem first rescale experience

Take the cps09mar dataset (full sample).

(a) Estimate a 6th order polynomial regression of log(wage) on experience. To reduce the ill-conditioned problem first rescale experience to lie in the interval [0,1] before estimating the regression.

(b) Plot the estimated regression function along with 95% pointwise confidence intervals.

(c) Interpret the findings. How do you interpret the estimated function for experience levels above 65?

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