You Extract Approximately 5,000 Observations from the Current Population Survey $\widehat { \text { ahe } }$

question 48

Multiple Choice

You extract approximately 5,000 observations from the Current Population Survey (CPS) and estimate the following regression function: $\widehat { \text { ahe } }$ = 3.32 - 0.45 $\times$ Age, R²= 0.02, SER = 8.66 (1.00) (0.04)
Where ahe is average hourly earnings, and Age is the individual's age. Given the specification, your 95% confidence interval for the effect of changing age by 5 years is approximately

• A)[$1.96, $2.54]
• B)[$2.32, $4.32]
• C)[$1.35, $5.30]
• D)cannot be determined given the information provided

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Definitions:

Degrees Of Freedom

In statistics, degrees of freedom are the number of values in the final calculation of a statistic that are free to vary, often linked to the sample size.

Multiple Logistic Regression

A statistical analysis method used to predict the outcome of a dependent variable based on two or more independent variables, particularly for binary outcomes.

Explanatory Variables

Variables in a statistical model that are used to explain variation in the response variable, also known as independent variables.

Indicator Variable

A variable used in statistical models that takes the value 1 if a specific condition is true and 0 if it is false, often used to represent categorical data in numerical form.