Sketch of Solutions for Applied Exercise
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چکیده
Prof. Ken Chay Department of Economics Fall Semester, 2005 ECON 142 SKETCH OF SOLUTIONS FOR APPLIED EXERCISE #2 Question 1: a. Below are the scatter plots of hourly wages and log-wages on the y-axes and education on the x-axis, respectively. In both figures, there appears to be evidence of heteroskedasticity in the variance of the outcome with respect to education. Notice how the dispersion of points at a given level of education varies across the education levels. In addition, it appears that there may be more heteroskedasticity in the level of wages than in log-wages.
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