Ing.cengage.com + MindTap - Cengage Learning CENGAGE MINDTAP Q Search this course ? Module One Quiz X 2. STEP: 2 of 2 A-Z The measure of standard error can also be applied to the parameter estimates resulting from linear regressions. For example, consider the following linear regression equation that describes the relationship between education and wage: WAGE; = Bo + $1 EDUC; + e; ? where WAGE; is the hourly wage of person i (i.e., any specific person) and EDUC; is the number of years of education for that same person. The residual & encompasses other factors that influence wage, and is assumed to be uncorrelated with education and have a mean of zero. Suppose that after collecting a cross-sectional data set, you run an OLS regression to obt llowing parameter estimates: bongo 3.11 3.755 WAGE; = -10.1 + 4.4 EDUC; 2.465 1.82 If the standard error of the estimate of 1 is 1.29, then the true value of , lies between and . As the number of observations in a A+ data set grows, you would expect this range to increase _ in size. Grade Final Step TOTAL SCORE: 1/2 (to complete this step and unlock the next step) Grade It Now Save & Continue Continue without saving