ECON 113 Midterm: Spring 05 Midterm 2
Document Summary
The exam is closed book and closed notes you may use calculators. You must show your work to receive full credit: we are interested in the determinants of a person"s salary. We run the following regression of annual earnings on a workers education, age, number of kids, experience ect (assumptions 1-6 hold) I nt er v al ] educ | 440. 9637 t enur e | xxxxxxxxx xxxxxxxx xxxxx xxxxx - 292. 565866 s i c k l v e | 8. Conduct a 2-sided test at the 1. 98% significance level to determine if experience (exper) is a statistically significant determinant of workers earnings. (10 points) 1 :h: if you were going to conduct a one sided t-test on tenure (years on the job) which side would you put the rejection region on and why? (10 points) 1/6: there are two workers that are identical except for their education and experience.
