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

1 Use the data in WAGE1.RAW for this exercise.

(i) Estimate the equation wage = b0 + b1educ + b2exper + b3tenure + 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 levellevel model or the log-level model?

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