Question 5: FOR ETF2100 ONLY(7 Marks) In this question, we examine the hours of work per week by married women (H) as a function of their earning per hour (W) measured in dollars, and education

Question 5: FOR ETF2100 ONLY(7 Marks) In this question, we examine the hours of work per week by married women (H) as a function of their earning per hour (W) measured in dollars, and education. Note, you do not need a dataset or Eviews for this question. There are four categories of education level: (i) Less than high school qualification, (ii) High school graduate (with no Bachelor's degree), (iii) Bachelor's degree, and (iv) Postgraduate degree Let POSTGRAD =1 if a woman has a postgraduate degree, and zero otherwise. Let BACH=1 if a woman has Bachelor's degree, and zero otherwise. Let HIGH=1 if a woman has graduated high school (but has no Bachelor's degree). The regression model is: (3) In(H;) = B1 + B2ln(Wi) + B3POSTGRAD; + B4BACH; + B3 HIGH; + ei The estimated model is: In(H) = 3.71 +0.01ln(Wi) + 0.073POSTGRAD; + 0.046BACH - 0.001 HIGH (a) Interpret the coefficient of BACH using both the “rough” calculation and the “exact” calcula- tion. Report your answers to 2 decimal place. (4 Marks) (b) Find point prediction (using the natural predictor) for the hours of work of a woman earning 25 dollars an hour who has a postgraduate degree. (3 Marks)