We run a regression to test whether higher working experience leads to higher ho

Question

We run a regression to test whether higher working experience leads to higher hourly wages, and include three explanatory variables age, education squared, and log of experience. We obtain the following fitted regression line.

How to interpret the coefficient of age?

percent

When age increases 1 unit, wage increases 0.56 unit

When age increases 1 unit, wage increases 0.56 percent

percent

percent

When age increases 1 unit, wage increases 0.56 unit

When age increases 1 unit, wage increases 0.56 percent

percent

Explanation / Answer

The following regression equation interprets the impact of the variables on wage , when age increases by one unit the wage increases by 0.56% . Part c .

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

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