Question: use R package to run the following two non-nested models and interpret the data Exercise 1: Use the PSID1982 dataset which is available is AER

 use "R" package to run the following two non-nested models and

use "R" package to run the following two non-nested models and interpret the data

interpret the data Exercise 1: Use the "PSID1982" dataset which is available

Exercise 1: Use the "PSID1982" dataset which is available is "AER" package and consider the following two non-nested models: M1: log(wage) = Po + Bieduc + Byexper + Byexper2 + BAweeks + Bymarried + Bogender + B,ethnicity + Bunion + u M2: log(wage) = Bo + Bieduc + Byexper + Byexper2 + BAweeks + Bsoccupation + B6south + B,smsa + Bgindustry + v (a) Compute the J tests for MI vs. M2 and M2 vs. M1, respectively. What is your conclusion? (b) Both MI and M2 can be artificially nested within a larger model. Use an F test for MI versus this augmented model. Repeat for M2 versus the augmented model. What do you conclude

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