Suppose that you are interested in determining the effect of number of hours worked on earnings. The Sheet “Question 1” on dataset “Midterm Data.xlsx” consists of the earnings, working hours, and productivity of 40 workers. wkearns: avg. weekly earnings wkhours: avg. weekly hours outphr: output per labor hour ChatGPT Link: [3 Points] Using GPT 4o or GPT 4.5, estimate the naïve regression: wkearns = 𝑚̃ ∗ wkhours + 𝑏̃ + 𝑒̃ (1) Test for linearity and heteroscedasticity in the chat. Do not correct for any violations. [4 Points] Assuming the estimates to be unbiased, interpret the estimates of 𝑚̃ and 𝑏̃, including the p-value. Does this result align with business intuition? Why or why not? [No AI allowed] [3 Points] Using GPT 4o or GPT 4.5, estimate the full regression: wkearns = 𝑚1 ∗ wkhours + 𝑚2 ∗ outphr + 𝑏 + 𝑒 (2) Test for linearity and heteroscedasticity. If any of these two assumptions are violated, instruct GPT to correct the model accordingly in the chat linked above. If there are no issues, proceed to question 1d. [4 Points] Interpret the estimates of 𝑚1 and 𝑚2, including the p-value. [No AI … Read more