Given: (7 Pts Where:WAGES = Pay Per Hour of Work
EXPER = Years

Given: (7 pts. each)
Dependent Variable: WAGES
Method: Least Squares
Date: 12/08/08 Time: 10:39
Sample: 1534
Included observations: 534


$\begin{array}{crlrr}\hline \hline \text { Variable } & \text { Coefficient } & \text { Std. Error } & \text { t-Statistic } & \text { Prob. } \\\hline \hline \text { C } & 8.622140 & 0.505267 & 17.06451 & 0.0000 \\\text { EXPER } & 0.080909 & 0.024238 & 3.338126 & 0.0009 \\\text { FEM } & -0.765100 & 0.764604 & -1.000648 & 0.3175 \\\text { EXFER*FEM } & -0.079757 & 0.035061 & -2.274768 & 0.0233 \\\hline \hline \text { R-squared } & 0.061907 & \text { Mean dependent var } & &9.023947 \\\text { Adjusted R-squared } & 0.056597 & \text { S.D. dependent var } & &5.138874 \\\text { S.E. of regression } & 4.991333 & \text { Akaike info criterion } && 6.060745 \\\text { Sum squared resid } & 13204.10 & \text { Schwarz criterion } && 6.092808 \\\text { Log likelihood } & -1614.219 & \text { F-statistic } & &11.65871 \\\text { Durbin-Watson stat } & 1.765220 & \text { Prob(F-statistic) } && 0.000000 \\\hline \hline\end{array}$ Where:WAGES = pay per hour of work
EXPER = years of experience
FEM = 1 if female, 0 otherwise
CHICK_t-2 + e_t "
A) Interpret the coefficient on EXPER.
B) Interpret the coefficient on EXPER*FEM.
C) Draw a diagram reflecting the regression results with WAGES on the vertical axis and
EXPER on the horizontal axis. Label all intercepts and slopes.
D) What would be the new values of the structural parameters if the dummy was flip-flopped?
E) Which regression fits better, the one from question 1 or the one from question 2? Explain.