Use the data in WAGE1.RAW for this exercise. (i) Estimate the equation wage 5 b0 1 b1educ 1 b2exper 1 b3tenure 1 u. Save the residuals and plot a histogram. (ii) Repeat part (i), but with log(wage) as...

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Use the data in WAGE1.RAW for this exercise.

(i) Estimate the equation

wage 5 b0 1 b1educ 1 b2exper 1 b3tenure 1 u.

Save the residuals and plot a histogram.

(ii) Repeat part (i), but with log(wage) as the dependent variable.

(iii) Would you say that Assumption MLR.6 is closer to being satisfied for the level- level model or the log-level model?

Answered Same Day Dec 25, 2021

Solution

David answered on Dec 25 2021

113 Votes

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