Examine the implications that the use of the logarithms of the income variables in the analysis of the data set nswpsid1 has for the interpretation of the results. Determine predicted values for each...

Examine the implications that the use of the logarithms of the income variables in the analysis of the data set nswpsid1 has for the interpretation of the results. Determine predicted values for each observation. Then exp(predicted values) gives predicted incomes in 1978. Take exp(estimated treatment effect) to get an estimate of the factor by which a predicted income for the control group must, after adding the offset, be multiplied to get a predicted (income+offset) for the treatment group, if explanatory variable values are the same.