Using data from 50 workers, a researcher estimates Wage e Education + Experience + AAge + 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. The regression results are shown in the following table. standard Tntercept Education Experience Age Coettieiente 7.56 1.53 0.42 -0.04 Error 4.35 0.38 t Stat 1.74 4.03 3.50 -0.57 P-Valoe 0.089 0.0002 0.0010 0.5705 0.12 0.07 a-1. Interpret the point estimate for O As Education increases by 1 year, Wage is predicted to increase by 1.53/hour. O As Education increases by 1 year, Wage is predicted to increase by 0.42/hour. OAs Education increases by 1 year, Wage is predicted to increase by 1.53/hour, holding Age and Experience constant. O As Education increases by 1 year, Wage is predicted to increase by 0.42/hour, holding Age and Experience constant. a-2. Interpret the point estimate for a. O As Experience increases by 1 year, Wage is predicted to increase by 1.53/hour. O As Experience increases by 1 year, Wage is predicted to increase by 0.42/hour. O As Experience increases by 1 year, Wage is predicted to increase by 1.53/hour, holding Age and Education constant. O As Experience increases by 1 year, Wage is predicted to increase by 0.42/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.)
Using data from 50 workers, a researcher estimates Wage e Education + Experience + AAge + 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. The regression results are shown in the following table. standard Tntercept Education Experience Age Coettieiente 7.56 1.53 0.42 -0.04 Error 4.35 0.38 t Stat 1.74 4.03 3.50 -0.57 P-Valoe 0.089 0.0002 0.0010 0.5705 0.12 0.07 a-1. Interpret the point estimate for O As Education increases by 1 year, Wage is predicted to increase by 1.53/hour. O As Education increases by 1 year, Wage is predicted to increase by 0.42/hour. OAs Education increases by 1 year, Wage is predicted to increase by 1.53/hour, holding Age and Experience constant. O As Education increases by 1 year, Wage is predicted to increase by 0.42/hour, holding Age and Experience constant. a-2. Interpret the point estimate for a. O As Experience increases by 1 year, Wage is predicted to increase by 1.53/hour. O As Experience increases by 1 year, Wage is predicted to increase by 0.42/hour. O As Experience increases by 1 year, Wage is predicted to increase by 1.53/hour, holding Age and Education constant. O As Experience increases by 1 year, Wage is predicted to increase by 0.42/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.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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5
Transcribed Image Text:b. What is the sample regression equation? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal
places.)
Experience +
|Age
Education +
c. Predict the hourly wage rate for a 24-year-old worker with 4 years of higher education and 4 yearof experience. (Round final
answer to 2 decimal places.)
Transcribed Image Text:Using data from 50 workers, a researcher estimates Wage lo• Education + Experience + AAge + 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. The regression results are shown in the following table.
Standard
Coefticiente
7.56
1.53
Error
4.35
0.38
t Stat
1.74
p-Value
0.0889
0.0002
Intercept
nducation
Experience
Age
4.03
3.50
0.0010
0.42
-0.04
0.12
0.07
-0.57
0.5705
a-1. Interpret the point estimate for .
As Education increases by 1 year, Wage is predicted to increase by 1.53/hour.
As Education increases by 1 year, Wage is predicted to increase by 0.42/hour.
O As Education increases by 1 year, Wage is predicted to increase by 1.53/hour, holding Age and Experience constant.
O As Education increases by 1 year, Wage is predicted to increase by 0.42/hour, holding Age and Experience constant.
a-2. Interpret the point estimate for 2.
O As Experience increases by 1 year, Woge is predicted to increase by 1.53/hour.
O As Experience increases by 1 year, Wage is predicted to increase by 0.42/hour.
O As Experience increases by 1 year, Wage is predicted to increase by 1.53/hour, holding Age and Education constant.
O As Experience increases by 1 year, Wage is predicted to increase by 0.42/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.)
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