(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?

---

Definitions:

Global South

A term used to describe countries typically situated in the Southern Hemisphere, often associated with lower economic development and historical colonization impacts.

Foreign Direct Investment

A financial commitment by an individual or company from one country into business ventures or the acquisition of assets in a different country, either by forming business operations or purchasing business assets.

China

A country in East Asia, the world's most populous nation, known for its rich cultural history and rapid modern economic growth.

Largest Net Recipient

A term most often used in economics or finance, referring to the entity or country that receives the most in net transfers or payments relative to what it provides.