A regression of average weekly earnings (AWE, measured in dollars) on age (measured in years) using a random sample of college-educated full-time workers aged 25-65 yields the following: AWE = 696.7 + 9.6 × Age, R = 0.023, SER 624.1. a. Explain what the coefficient values 696.7 and 9.6 mean. b. The standard error of the regression (SER) is 624.1. What are the units of measurement for the SER? (Dollars? Years? Or is SER unit-free?) c. The regression R' is 0.023. What are the units of measurement for the R2? (Dollars? Years? Or is R? unit-free?)

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A regression of average weekly earnings (AWE, measured in dollars) on age
(measured in years) using a random sample of college-educated full-time
workers aged 25-65 yields the following:
AWE = 696.7 + 9.6 X Age, R2
0.023, SER = 624.1.
%3D
a. Explain what the coefficient values 696.7 and 9.6 mean.
b. The standard error of the regression (SER) is 624.1. What are the units
of measurement for the SER? (Dollars? Years? Or is SER unit-free?)
c. The regression R is 0.023. What are the units of measurement for the
R2? (Dollars? Years? Or is R2 unit-free?)
Transcribed Image Text:A regression of average weekly earnings (AWE, measured in dollars) on age (measured in years) using a random sample of college-educated full-time workers aged 25-65 yields the following: AWE = 696.7 + 9.6 X Age, R2 0.023, SER = 624.1. %3D a. Explain what the coefficient values 696.7 and 9.6 mean. b. The standard error of the regression (SER) is 624.1. What are the units of measurement for the SER? (Dollars? Years? Or is SER unit-free?) c. The regression R is 0.023. What are the units of measurement for the R2? (Dollars? Years? Or is R2 unit-free?)
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