Question: Please solve this as soon as possible coreectly for 3 upvotes. c) Instead of polynomials the natural log of education was included as an explanatory

Please solve this as soon as possible coreectly for 3 upvotes.

c) Instead of polynomials the natural log of education was included as an explanatory variable and the following regression was also estimated: In(wage) = Mo + u ln(educ) + uz south + uzurban + Masouth * urban + e The results are reported in the table below: Source SS df MS Model Residual 25.4718488 140.184445 Number of obs = FC 4, 930) = Prob > F R-squared Adj R-squared Root MSE 6.3679622 . 150735963 935 42.25 0.0000 0.1538 0.1501 38825 930 Total 1 165.656294 934 . 177362199 lwage 1 Coef. Std. Err. t P>It! [95% Conf. Interval) ### leduc south urban south urban cons .76265 -.0805032 . 1840493 -.0738845 4.717399 .0804417 .0486296 0362853 0583648 .2112056 4 Without performing any hypothesis test can you determine whether estimation using the specification in part (b) or (c) will be better for your analysis. Why or why not-explain. (4 marks) c) Instead of polynomials the natural log of education was included as an explanatory variable and the following regression was also estimated: In(wage) = Mo + u ln(educ) + uz south + uzurban + Masouth * urban + e The results are reported in the table below: Source SS df MS Model Residual 25.4718488 140.184445 Number of obs = FC 4, 930) = Prob > F R-squared Adj R-squared Root MSE 6.3679622 . 150735963 935 42.25 0.0000 0.1538 0.1501 38825 930 Total 1 165.656294 934 . 177362199 lwage 1 Coef. Std. Err. t P>It! [95% Conf. Interval) ### leduc south urban south urban cons .76265 -.0805032 . 1840493 -.0738845 4.717399 .0804417 .0486296 0362853 0583648 .2112056 4 Without performing any hypothesis test can you determine whether estimation using the specification in part (b) or (c) will be better for your analysis. Why or why not-explain. (4 marks)

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