Question 3

Suppose that you want to study whether the increasing rate of worker's earnings according to the

change of age would decrease as the worker gets older, i.e., the null is increasing rate is not

affected by the change in age and the alternative is that the increasing rate is negatively affected

by an increase in worker's age. To answer the question, agesq

need(s) to additionally

enter the model in the previous question. The t-test statistic to study the null is

-2.15

Question 4

1 pts

Question 5

1 pts

By using the test statistic in the previous question, draw your conclusion at 5% significance level.

1 pts

The variable marst is a categorical variable encoded by six groups: married and spouse present,

married and spouse absent, separated, divorced, widowed, and never married. Generate the

dummy variable cmarr that takes 1 if an individual is currently married regardless of the presence of

her spouse and 0 otherwise. Find the average of cmarr and interpret it. Can you use both cmarr and