Question: Refer to your text MROZ data set (posted under the Additional Resources section of our course) and use Excel's regression data analysis tool or State

Refer to your text MROZ data set (posted under the \"Additional Resources\" section of our course) and use Excel's regression data analysis tool or State to compute the answers to the questions asked. Consider the following model: log(wage) = [30 + B1educ + u (1), where wage is hourly wage and educ is years of schooling. Assume that educ is endogenous (correlated with u). Further assume that motheduc(mother's education) is uncorrelated with u. Next, check that educ and motheduc are correlated by estimating a simple regression of educ on motheduc', using OLS (and using only the working women in the sample). You find that the tstatistic on motheduc is equal to , which indicates educ and motheduc have a signicant positive correlation: . (NOTE: Write your first answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. Add a leading minus sign symbol, a leading zero and trailing zeros when needed. Use a period for the decimal separator and a comma to separate groups of thousands. For your second answer, write either YES or NO. HINT: See Example 15.1.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
