Suppose There Is Another Worker in the Economy,whose Schooling and Earnings

question 10

Multiple Choice

Suppose there is another worker in the economy,whose schooling and earnings are governed by w = 6.3 ln (1 + s) .This worker will accumulate years of school and is of ability. Hint: in this case,MW(s) = 6.3/(1 + s)

• A) more,higher
• B) more,lower
• C) less,higher
• D) less,lower
• E) the same,equal

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Definitions:

Normally Distributed

Describes a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Probability

A measure of the likelihood of occurrence of a particular event or outcome, often expressed as a number between 0 and 1.

NORM.DIST

A function in various statistical software that returns the normal distribution for a specified mean and standard deviation.

Standard Error

Standard error is a statistical measure that estimates the accuracy with which a sample distribution represents a population by using standard deviation.