The table below provides the results of a regression of Y -Hourly Wages in TL on...

 

Transcribed Image Text:

The table below provides the results of a regression of Y -Hourly Wages in TL on X-Union Membership (if person i is a union member, then Xi = 1, zero otherwise. The values in parenthesis are standard errors of coefficients Constant Union Member Dependent variable: Observations WAGE 11.66 (0.22) 3.23 (0.54) 1,323 R² 0.03 Residual Std. Error 7.29 (df = 1321) a) Suppose that we were to regress wage on nonmembership instead, where nonmember = 1 if the person į is a nonmember, zero otherwise. Write down the estimated regression equation we would get. b) Using the scenario in (a), indicate how standard error of slope coefficient would adjust and indicate how R2 and standard error of residuals would adjust The table below provides the results of a regression of Y -Hourly Wages in TL on X-Union Membership (if person i is a union member, then Xi = 1, zero otherwise. The values in parenthesis are standard errors of coefficients Constant Union Member Dependent variable: Observations WAGE 11.66 (0.22) 3.23 (0.54) 1,323 R² 0.03 Residual Std. Error 7.29 (df = 1321) a) Suppose that we were to regress wage on nonmembership instead, where nonmember = 1 if the person į is a nonmember, zero otherwise. Write down the estimated regression equation we would get. b) Using the scenario in (a), indicate how standard error of slope coefficient would adjust and indicate how R2 and standard error of residuals would adjust

Answer rating: 100% (QA)

3 a We write down the estimated ... View the full answer