Q You are interested in the return of education on wages. To investigate this relationship, you...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q You are interested in the return of education on wages. To investigate this relationship, you collect a random sample, regress wage on education and find that one additional year of education, on average, leads to Aus10,000 more in salary per yearly. The p-value is 0.001 and the R-squared is 0.9 Excited about this sizeable effect you present your results to your master thesis advisor. He is sceptical and says that the true effect is likely much lower. Which of the reasons below could explain the advisors statement? [5 marks] Q You are interested in the return of education on wages. To investigate this relationship, you collect a random sample, regress wage on education and find that one additional year of education, on average, leads to Aus10,000 more in salary per yearly. The p-value is 0.001 and the R-squared is 0.9 Excited about this sizeable effect you present your results to your master thesis advisor. He is sceptical and says that the true effect is likely much lower. Which of the reasons below could explain the advisors statement? [5 marks]
Expert Answer:
Answer rating: 100% (QA)
Bias in the sample It is possible that the random sample you collected does not accurately represent the population as a whole It is possible that the estimated effect of education on earnings is over... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
You developed an interest in the LCOE relation and the publicized cost of electricity of 10.27¢/kWh for this year. You wonder if the addition of 60 MW of wind-sourced electricity will make any...
-
Which of the following is true about the consumer priceindex? Select one: a. It accounts for people switching to goods whose prices havefallen b. It assumes that consumers purchase the same amount of...
-
k) Assume that one of these portfolio's is the Market Portfolio and all portfolios, except Portfolio G, are fairly priced according to the CAPM. What is the highest utility score that can be achieved...
-
Use Simpsons Rule with n = 6 to estimate the area of the surface obtained by rotating the curve in Exercise 5 about the x-axis.
-
A simple pendulum is 5.00 m long. (a) What is the period of small oscillations for this pendulum if it is located in an elevator accelerating upward at 5.00 m/s2? (b) What is its period if the...
-
Assume that Bonsai Boards has the following LIFO perpetual inventory record for snowboards for the month of November: At November 30, the accountant for Bonsai Boards determines that the current...
-
For each of the following transactions and events, indicate the effect it will have on each of the three categories appearing in the Statement of Operations for a not-for-profit health care...
-
The Prisoner Reentry Institute ( PRI ) is requesting a core support grant of $ 5 0 0 , 0 0 0 from a funder to support a continuum of services over two years. You are tasked with developing a draft of...
-
a. Write an application that extends JPanel and displays your name. Place boxes of different colors around your name at intervals of 10, 20, 30, and 40 pixels. Save the file as JBorderPanel.java. b....
-
College athletes, especially males, are often perceived as having very little interest in the academic side of their college experience. One common problem is class attendance. To address the problem...
-
1) Calculate the speed (in m/s) a spherical rain drop would achieve falling from 3.60 km in a) the absence of air drag and b) with air drag. Take the size across of the drop to be 8 mm, the density...
-
case link: BMI (1979): https://supreme.justia.com/cases/federal/us/441/1/ FOGA (1941): https://supreme.justia.com/cases/federal/us/312/457/ AP :Assoc. Press v. US (1945):...
-
A very small object carrying -4.0 C of charge is attracted to a large, well-anchored, positively charged object. How much kinetic energy does the negatively charged object gain if the Voltage:...
-
At t=1.0 s, a person walking with constant velocity is located at x=3.0 m. At t = 6.0 s the person is located at x=5.0 m. (a) Draw a position vs. time graph for the person, and find their velocity...
-
As a demonstration of uniform circular motion in class, I often swung my keys from a 52.0 cm string in a horizontal circle over my head. Suppose my keys have a mass of 240. g, and during their motion...
-
You lead a team of intelligent individuals working together on common projects in your department. You and your team realize the need for a project management tool to help keep everyone on track and...
-
ABC company leased new advanced computer equipment to STU Ltd on 1 January 2019.STULtd has to pay annual rental of $290,000 starting at 1 January 2019. It is a four years lease with ultimate rental...
-
Lisa Sizemore, a taxpayer in the 10-15 percent tax bracket, purchased stock as an investment on July 11, 2011. She sold the stock on July 9, 2012, 2 days before qualifying for the long-term holding...
-
Dr. Ivan I. Incisor and his wife Irene are married and file a joint return for 2012. Ivan's Social Security number is 477-34-4321 and he is 48 years old. Irene I. Incisor's Social Security number is...
-
Kent Pham, CPA, is a 45-year-old single taxpayer living at 169 Trendie Street, La Jolla, CA 92037. His Social Security number is 865-68-9635. In 2012, Kent's W-2 as the controller of a local...
-
Refer to the data for Jen Weaver Insurance in Problem 4-34B. After journalizing and posting Weaver's adjusting and closing entries, prepare the company's income statement for the year ended April 30,...
-
The accountant of Lancer Copy Center encountered the following situations while adjusting and closing the books at February 28. Consider each situation independently. a. The accountant failed to make...
-
Selected accounts of Elevator Service Company, at December 31, 2008, follow. Requirements 1. Prepare the company's classified balance sheet in report form at December 31, 2008. Show totals for total...
Study smarter with the SolutionInn App