Question

8:48 Done 4 of 7 . To lest if a variable is endogenous, do the (ps) A. White test B. Likelihood Ratio tesat C. Park tes D. Breusch-Pagan tes E. Angris and Krueger tes F. None of the ahove. uestions 10 and 13 are baed on she ollowing regression Sappose the eatinasion of the following wage model yieilds the esimates 10. What is the wage differential betwoen a person living in a city and a person living in a nural area ceteris paribus? (5pts) 11. What is the return to edacation(an addirioeal year of edacation) oeteris paribus? (Spts) 12. What is the wagedifferential betweem a white living in city and a noo-white living in ual anca given 10 years of education? You must show your work (10pts) 13. What is the wage difierential between a white living in nural area with 10 years of education and anoo-whine living in nural area with 12 years of education? You must show your work (10pa)

Answer 1

To test for endogeneity, we have Hausman test, which is also known as Durbin Wu Hausman test.

White test, park test, BP test are for heteroscedasticity

LRT is to find the best hypothesis test

Angrist and kreuger test is for instrumental validity of a variable.