The data in WAGE2.RAW on working men was used to estimate the following equation
ID: 3170363 • Letter: T
Question
The data in WAGE2.RAW on working men was used to estimate the following equation: where educe is years of schooling, sibs is number of siblings, medic is mother's years of schooling, and feud is father's years of schooling. Do sibs have the expected effect? Explain. Holding medic and feud fixed, by how much does sibs have to increase to reduce predicted years of education by one year? (A no integer answer is acceptable here.) Discuss the interpretation of the coefficient on medic. Suppose that Man A has no siblings, and his mother and father each have 12 years of education. Man B has no siblings, and his mother and father each have 16 years of education. What is the predicted difference in years of education between B and A?Explanation / Answer
2. The coefficient of meduc is 0.131. This value says that if there is one year increment on mother’s education then the years of schooling (educ) is going to be increased by 0.131 units.
3. educ^ = 10.36 - .094 sibs + .131 meduc + .210 feduc
Man A :
educ = 10.36 – (.094*0)+(12*0.131)+(0.210*12) = 14.452
Man B :
educ = 10.36 – (.094*0)+(16*0.131)+(0.210*16) = 15.816
The difference = 15.816 – 14.452 = 1.364 ~ 1
The predicted difference in years of education between B and A is 1.364 years or approximately 1 year.
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