The following data from a random sample of individuals that are 25 years old. Note, wage is the hourly earnings in US dollars and educ is years of education. i 1 2 3 4 wage 12.18 12.18 20.09 7.39 educ 13 11 16 12 Consider the following model: In(wage)-Bo+B₂educ+u. Calculate the estimate of B₁. Round your answer to two decimal places.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter7: Production Economics
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The following data from a random sample of individuals that are 25 years old. Note, wage is the hourly earnings in US dollars and
educ is years of education.
i
1
2
3
4
wage
12.18
12.18
20.09
7.39
educ
13
11
16
12
Consider the following model: In(wage)-Bo+B₁educ+u.
Calculate the estimate of B₁. Round your answer to two decimal places.
Transcribed Image Text:The following data from a random sample of individuals that are 25 years old. Note, wage is the hourly earnings in US dollars and educ is years of education. i 1 2 3 4 wage 12.18 12.18 20.09 7.39 educ 13 11 16 12 Consider the following model: In(wage)-Bo+B₁educ+u. Calculate the estimate of B₁. Round your answer to two decimal places.
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