Question: Use the data in WAGE1 for this exercise. (i) Estimate the equation wage 5 b0 1 b1educ 1 b2exper 1 b3tenure 1 u. Save the

Use the data in WAGE1 for this exercise.

(i) Estimate the equation wage 5 b0 1 b1educ 1 b2exper 1 b3tenure 1 u.

Save the residuals and plot a histogram.

(ii) Repeat part (i), but with log(wage) as the dependent variable.

(iii) Would you say that Assumption MLR.6 is closer to being satisfied for the level-level model or the log-level model?

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