Question 4

logwage = 5.40 + .0654 educ + .0140 exper + .0117 tenure + .199 married .188 black

(0.11)(.0063)(.0032)(.0025)(.039)(.038)

.091 south + .184 urban

(.026)(.027)

n = 935, R² = .253.

a)Interpret the coefficients for educ, exper and tenure.

b)Interpret the dummy variables

c)Which of the parameters from the estimated regression are statistically significant at 5% significance level?

d)Mr. John is interested in estimating overall significance of the model. Which method can be employed? is the model statistically significant at 5 percent. State the null and alternative.