Using data from 50 workers, a researcher estimates Wage = 0 + 1 Education + 2 Ex

Question

Using data from 50 workers, a researcher estimates Wage = 0 + 1 Education + 2Experience +3Age + , 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.

What is the sample regression equation? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)

Predict the hourly wage rate for a 24-year-old worker with 4 years of higher education and 4 years of experience. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Using data from 50 workers, a researcher estimates Wage = 0 + 1 Education + 2Experience +3Age + , 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.

Explanation / Answer

Solution:-

a1) As Education increases by 1 unit, Wage is predicted to increase by 1.53 units, holding Age and Experience constant.

a2.) As Experience increases by 1 unit, Wage is predicted to increase by 0.42 units, holding Age and Education constant.

b) Y = 7.56 + 1.53*Education + 0.42* Experience - 0.04*Age

c) The predicted hourly wage rate is 14.4.

Y = 7.56 + 1.53*Education + 0.42* Experience - 0.04*Age

Age = 24, Education = 4, Experience = 4

Y = 7.56 + 1.53* 4 + 0.42* 4 - 0.04*24

Y = 14.4

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