As a scholar of labour economics, you have inspired the possibility of education being a significant...

 

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As a scholar of labour economics, you have inspired the possibility of education being a significant determinant of wages Upon learning about learning regression analysis using matrices, you realize that you are able to predict average annual wage based on the years of schooling. The table below shows your data set Number of Observations Wages 1 2 3 4 5 6 7 8 9 10 Required. (0) (HI) (iv) 4.4 5.7 5.9 7.3 7.1 6,5 7.8 73 11 10.6 Education 6 7 8 9 10 11 12 13 14 15 Compute the OLS matrix estimators of [10 Marks] Calculate the coefficient af determination and interpret the results [5 Marks] Find the variance-covariance of [5 Marks] Given the vector of residue squares: e = y - XB a) Use the OLS estimator to derive the symmetric residue maker. [3 Marks] b) Show that your established residual maker is an Idempotent matris [2Marks] [Total: 25 Marks] As a scholar of labour economics, you have inspired the possibility of education being a significant determinant of wages Upon learning about learning regression analysis using matrices, you realize that you are able to predict average annual wage based on the years of schooling. The table below shows your data set Number of Observations Wages 1 2 3 4 5 6 7 8 9 10 Required. (0) (HI) (iv) 4.4 5.7 5.9 7.3 7.1 6,5 7.8 73 11 10.6 Education 6 7 8 9 10 11 12 13 14 15 Compute the OLS matrix estimators of [10 Marks] Calculate the coefficient af determination and interpret the results [5 Marks] Find the variance-covariance of [5 Marks] Given the vector of residue squares: e = y - XB a) Use the OLS estimator to derive the symmetric residue maker. [3 Marks] b) Show that your established residual maker is an Idempotent matris [2Marks] [Total: 25 Marks]