Consider the following estimated regression equation for average annual hours worked (per capita) for young (16–21 years) black men in 94 standard metropolitan statistical areas (standard errors in...

Consider the following estimated regression equation for average annual hours worked (per capita) for young (16–21 years) black men in 94 standard metropolitan statistical areas (standard errors in parentheses):

a. Develop and test (5-percent level) your own hypotheses with respect to the individual estimated slope coefficients. b. How would you respond to the claim that an estimated coefficient of W that is far less than one is proof that racial discrimination exists in the labor markets in this country? c. Since this is a cross-sectional model, is it reasonable to worry about heteroskedasticity? d. Suppose you ran a Breusch-Pagan test and found R²
= 0.08. Does this support or refute your answer to part c? (Hint: Be sure to complete the Breusch-Pagan test.) e. Suppose you were asked to make one change in the specification of this equation. What would you suggest? Explain your choice.