Compuational Pset

B. Computational Problems

1. This is a regression of earnings one education, age and age squared:

. reg earn higrade age agesq

Source | SS df MS Number of obs = 10940

-------------+------------------------------ F( 3, 10936) = 102.46

Model | 361750618 3 120583539 Prob > F = 0.0000

Residual | 1.2871e+10 10936 1176923.06 R-squared = 0.0273

-------------+------------------------------ Adj R-squared = 0.0271

Total | 1.3233e+10 10939 1209670.09 Root MSE = 1084.9

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earn | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

higrade | 105.7343 6.605693 16.01 0.000 92.78593 118.6826

age | 32.24626 11.72718 2.75 0.006 9.258862 55.23365

agesq | -.3568549 .1868963 -1.91 0.056 -.7232054 .0094956

_cons | -1221.05 186.2466 -6.56 0.000 -1586.127 -855.973

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1a) The regression of earnings on age and age squared is as follows:

. // question 1a

. regress earn age agesq

Source | SS df MS Number of obs = 11260

-------------+------------------------------ F( 2, 11257) = 23.46

Model | 56625265.5 2 28312632.7 Prob > F = 0.0000

Residual | 1.3588e+10 11257 1207078.04 R-squared = 0.0041

-------------+------------------------------ Adj R-squared = 0.0040

Total | 1.3645e+10 11259 1211892.95 Root MSE = 1098.7

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earn | Coef. Std. Err. t...