Bo Using data from 50 workers, a researcher estimates Wage = ẞe + B₁Education + B2Experience + B3Age + ε, 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. A portion of the regression results is shown in the following table. Intercept Education Experience Age Coefficients Standard Error t Stat p-Value 7.17 4.26 1.68 0.0991 1.81 0.35 5.17 0.0000 0.45 0.10 4.50 0.0000 -0.01 0.06 -0.17 0.8684 a-1. Interpret the point estimate for ẞ1. As Education increases by 1 year, Wage is predicted to increase by 1.81/hour. As Education increases by 1 year, Wage is predicted to increase by 0.45/hour. As Education increases by 1 year, Wage is predicted to increase by 1.81/hour, holding Age and Experience constant. As Education increases by 1 year, Wage is predicted to increase by 0.45/hour, holding Age and Experience constant. a-2. Interpret the point estimate for $2. As Experience increases by 1 year, Wage is predicted to increase by 1.81/hour. As Experience increases by 1 year, Wage is predicted to increase by 0.45/hour. As Experience increases by 1 year, Wage is predicted to increase by 1.81/hour, holding Age and Education constant. As Experience increases by 1 year, Wage is predicted to increase by 0.45/hour, holding Age and Education constant. b. What is the sample regression equation? Note: Negative values should be indicated by a minus sign. Round your answers to 2 decimal places. ŷ = + Education + Experience + Age c. Predict the hourly wage rate for a 22-year-old worker with 3 years of higher education and 4 years of experience. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. ŷ

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....