Using data from 50 workers a research estimates Wage Bo A1 E

Using data from 50 workers, a research estimates Wage Bo A1 Education A2 Experience +B3 er Age E, where Wage is the hourly wage rate and Education, Experience, and Age are the years of higher education, the years of experience, and the age of the worker, respectively. A portion of the regression results is shown in the following table. t Stat Coefficients Standard Error 6.11 4.12 1.76 0.0576 ntercept 0.30 0.0001 1.14 4.09 0.0027 Experience 0.44 0.18 3.43 -0.02 0.07 17 0.7690 a-1. What is the point estimate for B1? O 1.14 0.44 a-2. In terpret this value. O Same interpretation by using 0.44 or -0.02 As Education increases by 1 unit, Wage is predicted to increase by 1.14 units, holding Age and Experience constant. a-3. What is the point estimate for B2? 0.44 1.14 a-4. In this value. terpret O As Experience increases by 1 unit, Wage is predicted to increase by 0.44 units, holding Age Education constant. O Same interpretation by using 1.14 or -0.02 b. What is the sample regression equation? (Negative value should be indicated by a minus sign. Round your answers to 2 decimal places.) hat Education Experience Age c. What is the predicted value for Age 29, Education 3 and Experience 4. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Solution

a1) 1.14

a2) Option 2

a3) 0.44

a4) Option 1

b)

Regression equation is

y = 6.11+1.14(Education)+0.44(Experience)-0.02(age)

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c)

y = 6.11+1.14(3) +0.44(4)-0.02(29)

= 6.11+3.42+1.76-0.58

= 10.71