Question 1 (8 points) Do earnings differ by race? Using the Labor Force Participation 2011 data, we run the following regression: EARNINGS = B1 + B2S + B, ETHWHITE+u, where EARNINGS is the hourly earnings in dollar, S is years of schooling, and ETHWHITE is a dummy variable which equals to 1 if the individual is white and equals to 0 if the individual is non-white. Please use the following regression output to answer the questions SS Source df MS Modell 46783.3229 2 23391.6615 Residual | 731501.896 3592 203.647521 Number of obs - FC 2, 3592) Prob > F R-squared Adj R-squared - Root MSE 3595 114.86 0.0000 0.0601 0.0596 14.271 Total 1 778285.219 3594 216.551257 t Std. Err. EARNINGS Coef. P>It! (95% Conf. Interval) SI 1.176888 ETHWHITE 2.079192 cons . 1950893 .0851246 .541436 1.231892 1. (4 points) Interpret the coefficients of S and ETHWHITE. 2. (4 points) Do earnings differ by race? Perform the relevant test and conclude. Use 5% significance level. Question 1 (8 points) Do earnings differ by race? Using the Labor Force Participation 2011 data, we run the following regression: EARNINGS = B1 + B2S + B, ETHWHITE+u, where EARNINGS is the hourly earnings in dollar, S is years of schooling, and ETHWHITE is a dummy variable which equals to 1 if the individual is white and equals to 0 if the individual is non-white. Please use the following regression output to answer the questions SS Source df MS Modell 46783.3229 2 23391.6615 Residual | 731501.896 3592 203.647521 Number of obs - FC 2, 3592) Prob > F R-squared Adj R-squared - Root MSE 3595 114.86 0.0000 0.0601 0.0596 14.271 Total 1 778285.219 3594 216.551257 t Std. Err. EARNINGS Coef. P>It! (95% Conf. Interval) SI 1.176888 ETHWHITE 2.079192 cons . 1950893 .0851246 .541436 1.231892 1. (4 points) Interpret the coefficients of S and ETHWHITE. 2. (4 points) Do earnings differ by race? Perform the relevant test and conclude. Use 5% significance level