Econometrics

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Moderate

Unbiasedness - Hourly Wages

EMETRC-EMEKUT

Suppose you estimate a regression of hourly wages as a function of years of education using a random sample of the 2010 US working population and obtain the following:

$$\hat{wage} = 12 + 3.1edu$$

Do you think that 3.1 is an unbiased estimate of the true population parameter $\beta$?

A

Yes

B

No

C

Probably

D

There is not enough information to tell.