The Data Suggest That Wages Increase More with Age for the Highly

question 14

Multiple Choice

The data suggest that wages increase more with age for the highly educated compared to the less educated. This is evidence that

• A) the return to education is low for all education levels.
• B) the return to education is constant with respect to age.
• C) on-the-job training is unrelated to the level of formal schooling.
• D) less educated workers invest on-the-job training more so than do the highly educated.
• E) highly educated people also invest more in postschooling human capital compared to the less educated.

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Definitions:

Conditional Probability

The probability of an event occurring given that another event has already occurred.

Null Hypothesis

A hypothesis that suggests there is no statistical significance between the two variables in the hypothesis; it's assumed to be true until evidence indicates otherwise.

Alternative Hypothesis

A statistical hypothesis that proposes a difference or effect exists between certain variables, contrasting with the null hypothesis.

Commute By Car

The practice of traveling from one's home to their place of work or study by automobile.