Influence of experience, At the 5% significance level, can

Influence of experience

Reference no: EM131798776

A researcher interviews 50 employees of a large manufacturer and collects data on each worker's hourly w age (Wage), years of higher education (EDUC), experience (EXPER), and age (AGE). A portion of the data is shown below; the entire data set can be found on the text website; labeled Hourly Wage.

665_portion of the data.png

a. Estimate: Wage = β₀ + β₁ EDUC + β₂EXPER + β₃AGE + ε.

b. The researcher wonders if the influence of experience is different from that of age, or if β₂ ≠ β₃. Specify the competing hypotheses for this test.

c. What is the restricted model given that the null hypothesis is true? Estimate this model.

d. At the 5% significance level, can you conclude that the influence of experience is different from that of age?

Reference no: EM131798776

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