Results of Regressions of Average Hourly Earnings on Gender andEducation Binary Variables and Other Characteristics Using Datafrom the Current Population SurveyDependent variable: average hourly earnings (AHE).Regressor(1)(2)(3)5.595.55College (X,)5.57Female (X2)-2.69-2.67-2.670.300.30Age (X3)0.70Northeast (X4)0.61Midwest (Xs)-0.28South (X)Intercept12.944.493.83Summary StatisticsSER6.406.346.330.1800.1940.1980.193ok970.180410041004100Using the regression results in column (2):On average, a worker eans $ per hourfor each year that he or she ages.

The regression equation for the second column is Y = 4.49 + 5.59(X1) - 2.67(X2) + 0.30 (X3) taking…

Answered: Results of Regressions of Average Houry…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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INSUR A life insurance company wishes to examine the relationship between the amount of life insurance held by a family and family income. From a random sample of households, the company collected the accompanying data. The data are in units of thousands of dollars. INCOME 97 38 141 29 y = x = Let INSUR 280 75 INCOME 303 81 453 137 The numerator of the slope coefficient formula for the estimated regression equation is: 357 77 a 400,201.10 199 43 b 392,354.02 251 53 384,660.80 807 184 d 377,118.44 147 45 272 70 537 128 527 117 245 55 483 116 673 204 194 46 154 51 163 48 280 69 507 140 464 136 321 71 873 206 476 144 574 111 251 65 497 130 826 171 133 32 259 82 281 73 446 146 332 77 219 48 208 55 180 48 169 42 273 69 502 127 547 126 281 80 428 143 370 77 221 49 214 51
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Test whether the slope coefficient in both Model is statistically significant at 10% significance level.
A finance manager employed by an automobile dealership believes that the number of cars sold in his local market can be predicted by the interest rate charged for a loan. Interest Rate (%) Number of Cars Sold (100s) 3 5 10 7 8 2 The finance manager performed a regression analysis of the number of cars sold and interest rates using the sample of data above. Shown below is a portion of the regression output. Regression Statistics Multiple R0.998868 R2 0.997738 Coefficient |14.88462 Interest Rate -1.61538 Intercept 1. Are there factors other than interest rate charged for a loan that the finance manager should consider in predicting future car sales? 2. Is interest rate charged for a loan the most important factor to be considered in predicting future car sales? Explain your reasoning.The dealership's vice- president of marketing has requested a sales forecast at the prevailing interest rate of 7%. 3. As finance manager, what reasons would you convey to the vice-president in recommending…
Q.3. A random sample of ten families had the following income and food expenditure Families A B C D E F G H I J Income 18 28 31 38 15 13 24 36 33 40 Food Expenditure 7 10 8 10 6 4 7 10 9 10 Estimate the regression line of food expenditure on income.
determine the regression line equation plot the line on a graph and summarize the results( reject or do not) is there enough evidence?
In a regression analysis, if SSE = 600 and SSR = 200, find the coefficient of determination. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.250 0.500 0.600 0.750 P.
the unemployment rate for 18- to 34-year-olds was reported to be 10.8% (the Cincinnati Enquirer, november 6, 2012). assume that this report was based on a random sample of four hundred 18- to 34-year-olds. a. a political campaign manager wants to know if the sample results can be used to conclude that the unemployment rate for 18- to 34-years-olds is significantly higher than the unemployment rate for all adults. according to the bureau of labor Statistics, the unemployment rate for all adults was 7.9%. develop a hypothesis test that can be used to see if the conclusion that the unemployment rate is higher for 18- to 34-year-olds can be supported.b. use the sample data collected for the 18- to 34-year-olds to compute the p-value for the hypothesis test in part (a). using a 5 .05, what is your conclusion?c. explain to the campaign manager what can be said about the observed level of significance for the hypothesis testing results using the p-value
2
13. Collinearity in a multiple regression analysis Suppose you want to examine the effects of a training program on future earnings using the following model: earn98= 4.64 +2.376train +0.371earn96 +0.366educ- 1.86 age +2.534 married (1.14) (0.43) (0.016) (0.062) (0.013) (0.4) where earn 98- 1998 earnings, in thousands of dollars train -1 if the individual participated in the training program, and =0 otherwise earn 96- 1996 earnings, in thousands of dollars educ years of education age = age, in years married-1 if the individual is married, and -0 otherwise Suppose that there is a high degree of correlation (but not perfect) between earnings in 1996, education, age, and marital status. True or False: We should be concerned about this high degree of correlation because it affects our ability to reliably estimate the impact of the training program on 1998 earnings, T. True False
Explain Conditional Mean Independence by considering a regression with two regressors?
Consider a regression in which a coefficient suffers from downward omitted variable bias. If you add a regressor that controls for the omitted variable bias: Group of answer choices 1. Can’t determine 2. The new estimate will be smaller. 3. The new estimate will remain unchanged. 4. The new estimate will be larger

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