Suppose That You Estimate the Sample Regression Function Employing the "Eye Test" You Might Suspect That the Marginal

question 13

Multiple Choice

Suppose that you estimate the sample regression function
$\log \text { Salary } _ { i } = 6.84 + .062 \text { Experience } _ { i } + .038 \text { Education } _ { i } - 8.538 \text { Blue Eyes } _ { i } + .019 \text { GPA } _ { i }$
Employing the "eye test" you might suspect that the marginal effect of

• A)experience is estimated incorrectly because it does not seem reasonable that each additional year of experience increases salary by 6.2 percent,holding all other independent constant.
• B)education is estimated incorrectly because it does not seem reasonable that each additional year of education increases salary by 3.8 percent,holding all other independent constant.
• C)having Blue Eyes is estimated incorrectly because it does not seem reasonable that the average salary of individuals with Blue Eyes is 853.8 percent less than the average salary of individuals with other eye colors,holding all other independent constant.
• D)GPA is estimated incorrectly because it does not seem reasonable that each one unit increase in GPA increases salary by 1.9 percent,holding all other independent constant.

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