Question

extract approximately​ 5,000 observations from the Current Population Survey​ (CPS) and estimate the following regression​ function:

ModifyingAbove AHE with caret equals 3.32 minus 0.45 times Age comma Upper R squared equals 0.02 comma SER equals 8.66AHE=3.32−0.45×Age, R2=0.02, SER=8.66

​(1.00) (0.04)

where AHE is average hourly​ earnings, and Age is the​ individual's age.

Given the​ specification, your​ 95% confidence interval for the effect of changing age by 5 years is​ approximately:

A.

​[$2.32, $4.32].

Answer 1