Introductory Econometrics 4th Edition by Jeffrey Wooldridge

تمرين 3

Use the data set in WAGE2.RAW for this problem. As usual, be sure all of the following regressions contain an intercept.
(i) Run a simple regression of IQ on educ to obtain the slope coefficient, say, 1.
(ii) Run the simple regression of log(wage) on educ, and obtain the slope coefficient, r
(iii) Run the multiple regression of log(wage) on educ and IQ, and obtain the slope coefficients, 1 and 2 , respectively.
(iv) Verify that 1 = 1 + rA.