a. Use the table of regression results to answer the questions below (1/2 point each): Left-handed...

 

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a. Use the table of regression results to answer the questions below (1/2 point each): Left-handed Age Age-squared Constant I D.V.= Wages 1,030,250 (53,649) 76,100 (33,126) -2,420.654 (1625.030) 2,050,090 (701,025) 623 Observation Standard errors in parentheses II D.V. Log(wages) 0.065 (0.004) 0.016 (0.010) -0.002 (0.002) 0.105 (0.080) 623 i. What is the predicted wage of a 28-year-old, left-handed reliever? ii. What level of significance does each coefficient be in column I have: 1%, 5%, 10%, or none? iii. How would we explain the value of the coefficient on the dummy variable "left-handed" in each column? iv. How should we interpret the combination of a positive coefficient on "age" but a negative coefficient on "age" squared? At what age does a pitcher's age start to have a net negative impact on their earnings? b. Use the following production function to answer the questions below. (1 point each) Q = 20L¹/5K¹/4 i. Write out the profit function using a generic w, r, and P ii. Find the equation for the MP₁, and show that it displays diminishing marginal product of labor. iii. Assuming K = K in the short-run, what is the equation for short-run labor demand? a. Use the table of regression results to answer the questions below (1/2 point each): Left-handed Age Age-squared Constant I D.V.= Wages 1,030,250 (53,649) 76,100 (33,126) -2,420.654 (1625.030) 2,050,090 (701,025) 623 Observation Standard errors in parentheses II D.V. Log(wages) 0.065 (0.004) 0.016 (0.010) -0.002 (0.002) 0.105 (0.080) 623 i. What is the predicted wage of a 28-year-old, left-handed reliever? ii. What level of significance does each coefficient be in column I have: 1%, 5%, 10%, or none? iii. How would we explain the value of the coefficient on the dummy variable "left-handed" in each column? iv. How should we interpret the combination of a positive coefficient on "age" but a negative coefficient on "age" squared? At what age does a pitcher's age start to have a net negative impact on their earnings? b. Use the following production function to answer the questions below. (1 point each) Q = 20L¹/5K¹/4 i. Write out the profit function using a generic w, r, and P ii. Find the equation for the MP₁, and show that it displays diminishing marginal product of labor. iii. Assuming K = K in the short-run, what is the equation for short-run labor demand?

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a i To find the predicted wage of a 28yearold lefthanded reliever we need to use the regression equation From the given table we can see that the dependent variable DV is Wages Therefore using the reg... View the full answer