A researcher has estimated the relationship between salaries of 100 selected employees of an organization (shown as "EARN" in $/hour) and their years of education (shown as "YRSEDUC", in years) as per the following regression outcome with 5% level of significance (numbers are made up): Model 1: OLS, using observations 1-100 Dependent variable: EARN coefficient std. error t-ratio p-value 0.0009 *** const 3.32418 1.00223 3.317 YRSEDUC 0.451931 0.0335255 13.48 5.73e-041 *** Mean dependent var 16.77115 Sum squared resid 598935.5 R-squared S.D. dependent var 8.758696 S.E. of regression 8.661234 Adjusted R-squared 0.022131 P-value(F) 0.022254 F(1, 7984) 181.7164 5.73e-41 Log-likelihood -28571.28 Akaike criterion 57146.55 Schwarz criterion 57160.52 Hannan-Quinn 57151.33 Use the above findings to answer the following questions: A-Given the above estimated outcome, test to verify if the slope coefficient of YRSEDUC is significant. Use a two-sided p-value statistical approach, and show all the required steps. B-Based on your findings above, do you think the variable YRSEDỤC is an important factor impacting EARN? Why or why not? (Statistical tables are attached if needed)

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question

2) 

A researcher has estimated the relationship between salaries of 100 selected employees of an organization (shown as "EARN" in $/hour) and their years of
education (shown as "YRSEDUC", in years) as per the following regression outcome with 5% level of significance (numbers are made up):
Model 1: OLS, using observations 1-100
Dependent variable: EARN
coefficient
std. error
t-ratio
p-value
const
3.32418
1.00223
3.317
0.0009
***
YRSEDUC
0.451931
0.0335255
13.48
5.73e-041 ***
Mean dependent var 16.77115
Sum squared resid 598935.5
R-squared
F(1, 7984)
Log-likelihood
S.D. dependent var 8.758696
S.E. of regression 8.661234
Adjusted R-squared 0.022131
P-value(F)
0.022254
181.7164
5.73е-41
-28571.28
Akaike criterion
57146.55
Schwarz criterion 57160.52
Hannan-Quinn
57151.33
Use the above findings to answer the following questions:
A-Given the above estimated outcome, test to verify if the slope coefficient of YRSEDUC is significant. Use a two-sided p-value statistical approach, and show all
the required steps.
B-Based on your findings above, do you think the variable YRSEDUC is an important factor impacting EARN? Why or why not?
(Statistical tables are attached if needed)
Transcribed Image Text:A researcher has estimated the relationship between salaries of 100 selected employees of an organization (shown as "EARN" in $/hour) and their years of education (shown as "YRSEDUC", in years) as per the following regression outcome with 5% level of significance (numbers are made up): Model 1: OLS, using observations 1-100 Dependent variable: EARN coefficient std. error t-ratio p-value const 3.32418 1.00223 3.317 0.0009 *** YRSEDUC 0.451931 0.0335255 13.48 5.73e-041 *** Mean dependent var 16.77115 Sum squared resid 598935.5 R-squared F(1, 7984) Log-likelihood S.D. dependent var 8.758696 S.E. of regression 8.661234 Adjusted R-squared 0.022131 P-value(F) 0.022254 181.7164 5.73е-41 -28571.28 Akaike criterion 57146.55 Schwarz criterion 57160.52 Hannan-Quinn 57151.33 Use the above findings to answer the following questions: A-Given the above estimated outcome, test to verify if the slope coefficient of YRSEDUC is significant. Use a two-sided p-value statistical approach, and show all the required steps. B-Based on your findings above, do you think the variable YRSEDUC is an important factor impacting EARN? Why or why not? (Statistical tables are attached if needed)
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman