What is the difference between the OLS predicted value Wage and E(WagelEducation

Question

What is the difference between the OLS predicted value Wage and E(WagelEducation)? A E(WagelEducation) and Wage are equivalent representations of the true value of Wage for given values of Education. O B E Wage Education is the expected value of wage or given values of Education, while Wage is the OLS predicted value of wage for given values of O c. E Wage Education s he true value of wage or given values of Education, while Wage s the OLS predicted value of age or given values o Education OD. Wage is the expected value of Wage for given values of Education, while E(WagelEducation) is the OLS predicted value of Wage for given values of Education Education

Explanation / Answer

1)it is the simple difference between regression and the expected value.

The correct choice is,

B. E(Wages|Education) is the expected value for given values of Education, while..

2) here, the independent variable is education, and hence A) provides evidence in favor OLS assumption #3.

Ans:- A. The years of education an individual can get is bounded above.

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