We are using data to investigate the the relationship between workers’ education and their wage. the data can be found on blackboard under the folder homework 3 which contains a database wage_data. csv for full-time, full-year workers aged 28-38. a description of the data is provided in the pdf file wage_data_descr. (a) suppose that all assumptions for ols are satisfied and estimate the following regression model: wagei = β0 + β1higheduci + ui , i = 1, . . , n. (4) the higheduc is equal to 1 if the individual accepted more than 12 years of eductaoin and is equal to 0 otherwise. there is no higheduc varialbe in the original dataset so that you need to create the varialbe by yourself. report the value of βˆ 1 and its heteroskedasticity robust standard error. (b) what is β1 measuring in this model.

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.