Use the data set in WAGE2.RAW for this problem. As usual, be sure all of the following regressions contain an intercept.
(i) Run a simple regression of IQ on educ to obtain the slope coefficient, say, β1 .
(ii) Run the simple regression of log(wage) on educ, and obtain the slope coefficient, βr
(iii) Run the multiple regression of log(wage) on educ and IQ, and obtain the slope coefficients, β1 and β2, respectively.
(iv) Verify that β1 = β1 + rA .
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