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Suppose we run a regression of earnings (E) on years of schooling (S), using STATA and the result that we get is:. We then demean schooling (subtract the years of schooling from the sample mean) and label this variable 'DS.' A regression of earnings on the demeaned schooling yields the result:. Earnings are measured in dollars per hour. What does the intercept coefficient '13' imply?

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MCQs on Econometrics, which is the use of statistical methods to develop theories or test existing hypotheses in economics or finance. 
 


Suppose we run a regression of earnings (E) on years of schooling (S), using STATA and the result that we get is:<br><img src='https://www.fatskills.com/images2/GradExams/FAEC90CE-B3BE-45C5-B62C-181C75279570.png' height='22' width='148'/>. We then demean schooling (subtract the years of schooling from the sample mean) and label this variable 'DS.' A regression of earnings on the demeaned schooling yields the result:<br><img src='https://www.fatskills.com/images2/GradExams/A4B94C19-CF42-496E-A6C4-58DE85FFC74B.png' height='22' width='149'/>. Earnings are measured in dollars per hour. What does the intercept coefficient '13' imply?





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