Using data from 50 workers, a researcher estimates Wage = B0 + B1Education + B2Experience + B3Age + ɛ, 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. The regression results are shown in the following table. Standard Coefficients Error 3.70 0.34 0.15 0.09 Stat p-Value 1.63 0.1100 6.03 1.25 Intercept Education Experience Age 3.68 0.0006 0.51 3.40 0.0014 -0.03 -0.33 0.7404 a-1. Interpret the point estimate for B1. O As Education increases by 1 year, Wage is predicted to increase by 1.25/hour. O As Education increases by1 year, Wage is predicted to increase by 0.51/hour. O As Education increases by 1 year, Wage is predicted to increase by 1.25/hour, holding Age and Experience constant. O As Education increases by 1 year, Wage is predicted to increase by 0.51/hour, holding Age and Experience constant. a-2. Interpret the point estimate for B2. O As Experience increases by 1 year, Wage is predicted to increase by 1.25/hour. O As Experience increases by 1 year, Wage is predicted to increase by 0.51/hour. O As Experience increases by 1 year, Wage is predicted to increase by 1.25/hour, holding Age and Education constant. O As Experience increases by 1 year, Wage is predicted to increase by 0.51/hour, holding Age and Education constant. b. What is the sample regression equation? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) Education Experience Age c. Predict the hourly wage rate for a 39-year-old worker with 5 years of higher education and 5 years of experience. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Using data from 50 workers, a researcher estimates Wage = B0 + B1Education + B2Experience + B3Age + ɛ, 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. The regression results are shown in the following table. Standard Coefficients Error 3.70 0.34 0.15 0.09 Stat p-Value 1.63 0.1100 6.03 1.25 Intercept Education Experience Age 3.68 0.0006 0.51 3.40 0.0014 -0.03 -0.33 0.7404 a-1. Interpret the point estimate for B1. O As Education increases by 1 year, Wage is predicted to increase by 1.25/hour. O As Education increases by1 year, Wage is predicted to increase by 0.51/hour. O As Education increases by 1 year, Wage is predicted to increase by 1.25/hour, holding Age and Experience constant. O As Education increases by 1 year, Wage is predicted to increase by 0.51/hour, holding Age and Experience constant. a-2. Interpret the point estimate for B2. O As Experience increases by 1 year, Wage is predicted to increase by 1.25/hour. O As Experience increases by 1 year, Wage is predicted to increase by 0.51/hour. O As Experience increases by 1 year, Wage is predicted to increase by 1.25/hour, holding Age and Education constant. O As Experience increases by 1 year, Wage is predicted to increase by 0.51/hour, holding Age and Education constant. b. What is the sample regression equation? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) Education Experience Age c. Predict the hourly wage rate for a 39-year-old worker with 5 years of higher education and 5 years of experience. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Transcribed Image Text:Using data from 50 workers, a researcher estimates Wage = B0 + B1Education + B2Experience + B3Age + ɛ, 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. The regression results are shown in the following table.
Standard
Coefficients Error
3.70
0.34
0.15
0.09
Stat p-Value
1.63 0.1100
6.03
1.25
Intercept
Education
Experience
Age
3.68 0.0006
0.51
3.40 0.0014
-0.03
-0.33 0.7404
a-1. Interpret the point estimate for B1.
O As Education increases by 1 year, Wage is predicted to increase by 1.25/hour.
O As Education increases by1 year, Wage is predicted to increase by 0.51/hour.
O As Education increases by 1 year, Wage is predicted to increase by 1.25/hour, holding Age and Experience
constant.
O As Education increases by 1 year, Wage is predicted to increase by 0.51/hour, holding Age and Experience
constant.
a-2. Interpret the point estimate for B2.
O As Experience increases by 1 year, Wage is predicted to increase by 1.25/hour.
O As Experience increases by 1 year, Wage is predicted to increase by 0.51/hour.
O As Experience increases by 1 year, Wage is predicted to increase by 1.25/hour, holding Age and Education
constant.
O As Experience increases by 1 year, Wage is predicted to increase by 0.51/hour, holding Age and Education
constant.
b. What is the sample regression equation? (Negative values should be indicated by a minus sign. Round your
answers to 2 decimal places.)
Education
Experience
Age
c. Predict the hourly wage rate for a 39-year-old worker with 5 years of higher education and 5 years of experience. (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
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