Refer to the table of estimated regressions below computed u

Refer to the table of estimated regressions below, computed using data for 1998 from the CPS, to answer the following question. The data set consists of information on 4000 full-time full-year workers. The highest educational achievement of each worker was either a high school diploma or a bachelor\'s degree. The worker\'s age ranged from 25 to 34 years. The data set also contained information on the region of the country where the person lived, marital status, and number of children. West is the omitted region. A detailed description of the variables used in the data set is available here Results of Regressions of Average Hourly Earnings on Gender and Education Binary Variables and Other Characteristics Using 1998 Data from the Curren Population Survey Dependent variable: average hourly earnings (AHE) Regressor College (X1) 5.44 (0.25) - 2.93 (0.24) 5.31 (0.25) - 2.19 (0.24) 0.28 (0.04) 0.53 (0.23) 0.69 (0.29) 0.28 (0.28) 3.13 5.35 (0.25) - 2.19 (0.24) 0.28 (0.04) Female (%) Age (%) Northeast (X4) Midwest (X5) South (X6) Intercept 12.27 4.06 Summary Statistics and Joint Tests F-statistic for regional effects = 0 SER 6.05 6.21 6.27 6.22

Solution

The value of t static is given as = B/ se B

From our regression we know B= 5.29 se(B) = 0.03

t vakue/ t calculated= 5.29/0.03 = 176.33