Question: Using the data set CPS04 described in Empirical Exercise 4.1, run a regres- sion of average hourly earnings (AHE) on Age and carry out the

Using the data set CPS04 described in Empirical Exercise 4.1, run a regres- sion of average hourly earnings (AHE) on Age and carry out the following exercises.

a. Is the estimated regression slope coefficient statistically significant? That is, can you reject the null hypothesis H: B = 0 versus a two- sided alternative at the 10%, 5%, or 1% significance level? What is the p-value associated with coefficient's t-statistic?

b. Construct a 95% confidence interval for the slope coefficient.

c. Repeat

(a) using only the data for high school graduates.

d. Repeat

(a) using only the data for college graduates.

e. Is the effect of age on earnings different for high school graduates than for college graduates? Explain. (Hint: Sec Exercise 5.15.) 15.2 Using the data set TeachingRatings described in Empirical Exercise 4.2, run a regression of Course_Eval on Beauty. Is the estimated regression slope coefficient statistically significant? That is, can you reject the null hypothe- sis Ho: B = 0 versus a two-sided alternative at the 10%, 5%, or 1% signifi- cance level? What is the p-value associated with coefficient's I-statistic?

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