Suppose you are a potential college student that is interested in determining whether it is worthwhile to declare a certain major.In an effort to find the answer,you collect data on 1,247 college who majored in HUMANITIES,SCIENCE,ENGINEERING,or ENGLISH and you estimate the sample regression function (standard errors in parentheses) $$\begin{array} { lllll }
\log~ \widehat {Sala}ry _{i}=&32,473.81+&0.03 \mathrm{GPA}_{i}+&0.02 \text { log StudyHours }\
&( 1,002.97 )& ( 0.0005 ) & ( 0.00003 ) \
&+ 0.01 \text { Science } _ { i } +& 0.08 \text { Engineering } _ { i } +& 0.02 \text { English } _ { i } \
&( 0.02 ) &( 0.025 )&(0.001) \
\end{array}$$
a)Interpret the coefficient estimate on GPA.Is this estimate statistically significant at a 5% level? Economically significant?
b)Interpret the coefficient estimate on Study Hours.Is this estimate statistically significant at the 5% level? Economically significant?
c)Interpret the coefficient estimates on SCIENCE,ENGINEERING,and ENGLISH.Are these estimates statistically significant at the 5% level? Economically significant?
d)Do you believe this is a reasonable model if you are interested in how GPA and Study hours affect Salaries? Why or why not?

Question

Suppose you are a potential college student that is interested in determining whether it is worthwhile to declare a certain major.In an effort to find the answer,you collect data on 1,247 college who majored in HUMANITIES,SCIENCE,ENGINEERING,or ENGLISH and you estimate the sample regression function (standard errors in parentheses) $$\begin{array} { lllll } 
\log~ \widehat {Sala}ry _{i}=&32,473.81+&0.03 \mathrm{GPA}_{i}+&0.02 \text { log StudyHours }\
&( 1,002.97 )& ( 0.0005 ) & ( 0.00003 ) \
&+ 0.01 \text { Science } _ { i } +& 0.08 \text { Engineering } _ { i } +& 0.02 \text { English } _ { i } \
&( 0.02 ) &( 0.025 )&(0.001) \
\end{array}$$ 
a)Interpret the coefficient estimate on GPA.Is this estimate statistically significant at a 5% level? Economically significant?
b)Interpret the coefficient estimate on Study Hours.Is this estimate statistically significant at the 5% level? Economically significant?
c)Interpret the coefficient estimates on SCIENCE,ENGINEERING,and ENGLISH.Are these estimates statistically significant at the 5% level? Economically significant?
d)Do you believe this is a reasonable model if you are interested in how GPA and Study hours affect Salaries? Why or why not?

Quizplus · Accepted Answer

The Answer of Suppose you are a potential college student that is interested in determining whether it is worthwhile to declare a certain major.In an effort to find the answer,you collect data on 1,247 college who majored in HUMANITIES,SCIENCE,ENGINEERING,or ENGLISH and you estimate the sample regression function (standard errors in parentheses) $$\begin{array} { lllll } 
\log~ \widehat {Sala}ry _{i}=&32,473.81+&0.03 \mathrm{GPA}_{i}+&0.02 \text { log StudyHours }\
&( 1,002.97 )& ( 0.0005 ) & ( 0.00003 ) \
&+ 0.01 \text { Science } _ { i } +& 0.08 \text { Engineering } _ { i } +& 0.02 \text { English } _ { i } \
&( 0.02 ) &( 0.025 )&(0.001) \
\end{array}$$ 
a)Interpret the coefficient estimate on GPA.Is this estimate statistically significant at a 5% level? Economically significant?
b)Interpret the coefficient estimate on Study Hours.Is this estimate statistically significant at the 5% level? Economically significant?
c)Interpret the coefficient estimates on SCIENCE,ENGINEERING,and ENGLISH.Are these estimates statistically significant at the 5% level? Economically significant?
d)Do you believe this is a reasonable model if you are interested in how GPA and Study hours affect Salaries? Why or why not?

Suppose You Are a Potential College Student That Is Interested