(Continuation from Chapter 4, Number 3)You Have Obtained a Sub-Sample $\begin{aligned}\widehat{\text { Earn }}= & 239.16+5.20 \times \text { Age }, R^{2}=0.05, \text { SER }=287.21 ., \\& (20.24)(0.57)\end{aligned}$

question 30

Essay

(continuation from Chapter 4, number 3)You have obtained a sub-sample of 1744
individuals from the Current Population Survey (CPS)and are interested in the
relationship between weekly earnings and age.The regression, using
heteroskedasticity-robust standard errors, yielded the following result: $\begin{aligned}\widehat{\text { Earn }}= & 239.16+5.20 \times \text { Age }, R^{2}=0.05, \text { SER }=287.21 ., \\& (20.24)(0.57)\end{aligned}$
where Earn and Age are measured in dollars and years respectively.
(a)Is the relationship between Age and Earn statistically significant?

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Definitions:

Low-risk Drivers

Individuals who are considered to have a lower probability of filing an insurance claim due to their safe driving habits, often resulting in lower insurance premiums.

Lemons

A citrus fruit with a bright yellow color and sour taste, often used in cooking and beverages.

Plums

A type of fruit that belongs to the genus Prunus, known for their sweet taste and juicy texture, often consumed fresh, dried, or in various culinary dishes.

Expected Value

The anticipated value for a given investment or decision in probability and statistics, calculated as the sum of all possible values each multiplied by the probability of occurrence.