Such that, the dependent variable is hours of training per employee, the variable sales represents annual sales, employees is the number of employees and grant variable is a dummy equals to one if the firm received a job training grant for 2010 and zero otherwise. Please, answer the following three questions: (a) Interpret the above estimations results (only the value of the OLS coefficient for each of the explanatory variables) (b) Is the variable grant individually significant to explain the dependent variable (at 1% significance level)? Explain (c) Is the model globally significant at 1% significance level? Explain
Such that, the dependent variable is hours of training per employee, the variable sales represents annual sales, employees is the number of employees and grant variable is a dummy equals to one if the firm received a job training grant for 2010 and zero otherwise. Please, answer the following three questions: (a) Interpret the above estimations results (only the value of the OLS coefficient for each of the explanatory variables) (b) Is the variable grant individually significant to explain the dependent variable (at 1% significance level)? Explain (c) Is the model globally significant at 1% significance level? Explain
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2AGP
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Such that, the dependent variable is hours of training per employee, the variable sales represents annual sales, employees is the number of employees and grant variable is a dummy equals to one if the firm received a job training grant for 2010 and zero otherwise. Please, answer the following three questions:
(a) Interpret the above estimations results (only the value of the OLS coefficient for each of the explanatory variables)
(b) Is the variable grant individually significant to explain the dependent variable (at 1% significance level)? Explain
(c) Is the model globally significant at 1% significance level? Explain
Transcribed Image Text:6. Gathering data for Michigan manufacturing firms in 2010, we obtain
the following estimation results using a log transformation:
OLS Estimation results
Dependent: log(training per employee)
Explanatory
t-statistic
Variable
Intercept
log(sales)
log(employees)
grant
Sample size (n)
R-squared
OLS
Coefficient
46.67
0.987
-0.555
0.125
105
0.237
7.559
-10.378
3.111
Degrees of Significance t-critical
Freedom
level
10.456
101
101
101
101
0.01
0.01
0.01
0.01
2.626
-2.626
2.626
F-statistic Degrees of Significance F-critical
Freedom
level
3(n),101 (d)
0.01
3.98
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