Economics Homework Help

he table below is used throughout the quiz.

It contains three estimated regressions, which were computed in

2007 using data on employees. The data set used for the regressions consisted of information on over 10,000 full-time, full-year workers. Employees were surveyed on their earnings and whether they had graduated high school or not. The data set also contains information on the region of the country where the person lived (North / East / South / West), and the individual’s gender and age.

For the purposes of this quiz:

AHE = average hourly earnings

Graduated high school (X1) = binary variable (1 if the employee graduated high school, 0 if they did not)

Male (X2) = binary variable (1 if male, 0 if female)

Age (X3) = age in years

North (X4) = binary variable (1 if Region = North, 0 otherwise)

South (X5) = binary variable (1 if Region = South, 0 otherwise)