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Assignment No5

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10 views1 page

Assignment No5

Uploaded by

k62.2312150228
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Below is the regression analysis involving the data on salaries and employment characteristics of 49

employees in a certain company (Source: Susan Wong)

Source | SS df MS Number of obs = 49


-------------+---------------------------------- F(3, 45) =
Model | 3 2166559.42 Prob > F =
Residual | 13672433.7 45 R-squared =
-------------+---------------------------------- Adj R-squared =
Total | 20172112 Root MSE =

------------------------------------------------------------------------------
wage | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
educ | 142.5099 34.85946
exper | 43.22531 14.30354 3.02 0.004 14.4165 72.03411
age | -1.913322 8.393527 -0.23 0.821 -18.81875 14.99211
_cons | 632.2442 423.3785 1.49 0.142 -220.484 1484.972
------------------------------------------------------------------------------
Where:
✓ WAGE = Wage rate per month (Range 981 - 3833)
✓ EDUC = Years of education beyond 8th grade when hired (Range 1 - 11)
✓ EXPER = Number of years at the company (Range 1 - 23)
✓ AGE = Age of employee (25 - 64)

a. Write down the regression equation representing the relationship between these variables.
Identify the independent variable(s) and the dependent variable(s).
b. Is the coefficient of EDUC statistically significant at the 5% level, given tc=2.571?
c. What is the interpretation of the slope term of EXPER?
d. Compute R2 of the model.
e. Is the model statistically significant at the 5% level, given Fc=2,81?

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