Given: (6 Pts Where: LNWAGES = the Natural Log of Pay Per Hour

Given: (6 pts. each)
Dependent Variable: LNWAGES
Method: Least Squares
Date: 12/05/08 Time: 10:01
Sample: 1534
Included observations: 534

$\begin{array}{crlrr}\hline \hline \text { Variable } & \text { Coefficient } & \text { Std. Error } & \text { t-Statistic } & \text { Prob. } \\\hline \hline \text { C } & 1.165162 & 0.106127 & 10.97895 & 0.0000 \\\text { ED } & 0.076850 & 0.007867 & 9.768470 & 0.0000 \\\text { FEM } & -0.232071 & 0.041253 & -5.625564 & 0.0000 \\\hline \hline \text { R-squared } & 0.192822 & \text { Mean dependent var } & &2.059181 \\\text { Adjusted R-squared } & 0.189782 & \text { S.D. dependent var } && 0.527733 \\\text { S.E. of regression } & 0.475024 & \text { Akaike info criterion } & &1.354700 \\\text { Sum squared resid } & 119.8191 & \text { Schwarz criterion } && 1.378747 \\\text { Log likelihood } & -358.7049 & \text { F-statistic } && 63.42366 \\\text { Durbin-Watson stat } & 1.903586 & \text { Prob(F-statistic) } & &0.000000 \\\hline \hline\end{array}$
Where: LNWAGES = the natural log of pay per hour of work
ED = years of education
FEM = 1 if female, 0 otherwise
A) Interpret the value of the constant term.
B) Interpret the value of the coefficient on ED.
C) Interpret the value of the coefficient on FEM.
D) According to this model, what are the expected wages of a female with 16 years of education?