In the dataset 'Q1', there are 23 annual observations (from year 1950 to 1972) of the following variables: Y =Real Gross Domestic Product (GDP) in millions of constant dollars of 1960, K =Capital Stock Valued in millions of dollars of 1960 and L=employed people in thousands. a) (10 marks) Use a suitable transformation to express the model in "linear-in-parameters (parameters here refer to β1 and β2)" form and give an economic interpretation of the parameters of themodel. b) (10marks)EstimatetheparametersofthemodelbyOLSandreport the results (please refer to Tutorial 4, question 3(b) to see how to present regression results). Interpret the estimated coefficientsineconomicterms. c) (10 marks) Test the individual significance hypothesis for each coefficient and comment on your results (two-sided, 5% significancelevel). d) (10 marks) Test the joint significance of the slope coefficients (two-sided,5%significancelevel). e) (10 marks) What is the R2 and adjusted R2 for your estimated model. Comment on the differences or lack of differences betweenR2 andadjustedR2.2. One of the widely investigated question in labor economics is the estimation of the causal relationship between education and earnings. In particular, the estimation of the 'return to education', i.e., how much do earnings of a person increase as a result of an exogenous change in years of education. To accomplish this, we will first estimate a simple version of the so called 'Mincer equation', which2relates log earnings to years of education of an individual. The following variables are obtained from a household survey for individualswithagesbetween24and65,youwillbeabletofindthevaluesof thosevariablesinthedataset'Q2'. mincome=individualmonthlyincome. age=ageoftheindividualinyears. gender =gender of the individual, it equals to 1 if the individual is maleand0otherwise. edu = education in years (for example, 12 years is complete high school,etc.) ttc=indicateiftheindividualhasafulltimejobornot,itequalsto1 iftheindividualhasafull-timejob,and0ifnot).a) (10marks)Estimatethefollowingregressionmodel: yi =β0+β1edui+ui where yi isthenaturallogarithmofmincomei andedui isyears ofeducation. Interpretthecoefficientinfrontofedui.(youneed tofirstgenerateanewvariable y,whichequalstothenaturallog ofmincome) b) (10marks)Estimatethepreviousmodelbothformenandwomen separately,i.e.,estimateamodelusingonlyobservationsofmales andestimateanothermodelusingonlyobservationsoffemales. Reporttheestimatedregressionsandinterpretandcompareboth coefficientsfrombothmodels. c) (10marks)Estimatethefollowingregressionmodel: yi =β0+β1edui+β2di+ui where di is a dummy variable that indicates the gender of the person. Report the regression results and interpret the coefficients carefully. (You need to first generate a dummy variable forgender) d) (10marks)Estimatethefollowingregressionmodel: yi =β0+β1edui+β2di+β3t