Suppose You Are a Human Resources Manager at a Large

question 4

Essay

Suppose you are a human resources manager at a large corporation and that you are interested in determining whether a specific training program increases the worker productivity enough to justify its implementation.In an effort to test your theory,you collect data on 672 workers,284 who participated in the training program and 388 who did not,with the dependent variable being measured worker productivity and independent variables being AGE,EXPERIENCE,EXPERIENCE SQUARED,EDUCATION,HOURS WORKED,and whether the individual PARTICIPATED in the training program.Suppose that you estimate the sample regression function (standard errors in parentheses) $\begin{array}{lllllll}TPS~\widehat {Rep}orts_{i} =&8.32+&4.17 \text { Age }_{i}+&6.24 \text { Experience }_{i}-&0.28 \text { Experience Squared }+&3.91 \text { Education }_{i}+&1.47 \text { Hours Worked } \\&(1.36)&(1.84) & (2.58) & (0.11)&(0.88)& (0.54)\\\end{array}$

a)Draw a graph with TPS Reports on the y-axis and EXPERIENCE in the x-axis assuming that experience goes from 0 to 22.
b)What is the marginal effect of experience in general? What is the marginal effect of experience for an employee going from 2 to 3 years? How about the marginal effect going from 15 to 16 years?
c)Where does experience reach a maximum?

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