2. You have obtained a sample of 14,925 individuals from the Current Population Survey (CPS) and are interested in the relationship between average hourly earnings and years of education. The regression yields the following result: ahe -4.58 + 1.71 * educ R² = 0.182 where abe and educ are measured in dollars and years respectively. a. Interpret the coefficients and the regression R-squared value. b. Do the results suggest that there is a guarantee for average hourly earnings to rise for everyone as they receive an additional year of education? Explain.

2. You have obtained a sample of 14,925 individuals from the Current Population Survey (CPS) and are interested in the relationship between average hourly earnings and years of education. The regression yields the following result: ahe -4.58 + 1.71 * educ R² = 0.182 where abe and educ are measured in dollars and years respectively. a. Interpret the coefficients and the regression R-squared value. b. Do the results suggest that there is a guarantee for average hourly earnings to rise for everyone as they receive an additional year of education? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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