Consider the following regression estimates 526 112.19 0.8000 0.3082 Adj R-squar

Question

Consider the following regression estimates 526 112.19 0.8000 0.3082 Adj R-squared 8.2975 4455 Number of obs F (2, 523) Source df MS Model44.5315181 Residual 103.798233 2 22.2657591 Prob >F 523 .198466985 R-squared Total148.329751 525.28253286 Root MSE Lwage Coef. Std. Err. [95% Conf. Interval] educ female cons 0772833 -.3608654 8262694 0070472 0390245 0940541 10.96 0.000 -9.25 0.000 8.79 0.000 0910475 -.4375294 .2842015 1.81184 0633591 6414991 where lwage is the log of monthly wage, educ is years of education and female is a dummy variable which is equal to 1 if the person is female and 0 otherwise. 7. The predicted wage in USS for a woman with 10 years of education is [2 marks] 8. The F-statistic of the F-test for the overall significance of the regression is [1 mark]

Explanation / Answer

The F test formula is given by F= Rsquared/(k-1)/(1-Rsquared)/(n-k), where k is the number of regressors and n is the number of observations. So in this case the F stat is F=0.3002/0.001= 300.2. Thus the test is significant at the 5% level and so the model is significant as a whole.

The predicted wage is given by the regression equation as whole which is given by Wage= 0.83 + (0.077*10) -0.37 = 1.23.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.