...1) The following table contains age and weekly earnings (wage) of randomly sampled dependent workers in Germany: Wage Age 962 50 571 23 777 38 692 26 780 31 875 40 723 28 918 52 We are interested in the following relationship between wage and the workers' age: wagei = β0 + β1 · agei + ϵi i=1,…,n. | IMPORTANT: Use a dot ('.') to separate decimal numbers and round your results to the THIRD digit after the decimal point. Do NOT use a comma (',') as a decimal separator. Example: Write 1.234 to represent the number 'one point two three four'. 1. Estimate the parameters in the above regression model by OLS. What is the estimated slope coefficient? | | 2. Compute the sample variance of wage. | | 3. What is the predicted wage at age 65? | | 2) We have a dataset of 55 firms containing information on each firm's marketing expenditures X and the total number of products sold Y. The following table reports descriptive statistics for the two variables in the dataset (marketing expenditures are expressed in thousand Euros and the number of products sold are expressed in thousand pieces): | Marketing expenditures X | number of products sold Y | Mean | 6 | 12 | Variance | 15 | 23 | The correlation between X and Y is 0.71. Predict the expected...
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