(a) Compute Adj.R2 (or R 2) for each of the regressions. (b) Using the regressio
ID: 3362093 • Letter: #
Question
(a) Compute Adj.R2 (or R 2) for each of the regressions.
(b) Using the regression results in column (1), do workers with college degrees earn
more, on average, than workers with only high school degrees? How much more?
(c) Do men earn more than women on average? How much more?
(d) Sally is a 29-year-old female college graduate. Jane is a 34-year-old female high school graduate. Using the regression results in column (2), predict Sally’s and Jane’s earnings.
8.31 -3.85
9.68 9.67 7440 7440 7440
(e) Nancy is a 28-year-old female college graduate from the South. Jennifer is a 28- year-old female college graduate from the Northeast. Using the regression results in column (3), calculate the expected difference in earnings between Nancy and Jennifer.
WHAT I HAVE SO FAR:
I calculated Rbar^2 to be (0.161), (0.17923), (0.18123). I did this using
rbar^2= 1-((7440-1)/(7440-7-1))x(1-0.162)=0.161.
1-((7440-1)/(7440-7-1))x(1-0.180)=0.17923
1-((7440-1)/(7440-7-1))x(1-0.818)=0.18123
Dependent Variable: average hourly earnings (AHE) College (Xi) Female (X2) Age (X3) Northeast (X4) Midwest (X5) South (X) Intercept Summary Statistics SER R2 Adj. R2 or R) 8.31 8.32 8.34 -3.85-3.81 -3.80 0.51 0.52 0.18 0.43 17.02 1.87 2.05 9.79 9.68 9.67 0.162 0.180 0.182 7440 7440 7440Explanation / Answer
b) Y'= 17.02 + 8.31*College-3.85*Female
College workers with a college degree and with high school degree.
Y'(college)= 17.02+8.31*1 -3.85*0 =25.33
Y'(School)=17.02+8.31* 0- 3.85*0 =17.02
On average: Y'(college) - Y'(School) = 25.33- 17.02 =8.31
College graduate earns $8.31 morethan school
c) Y'= 1.87+8.32*College- 3.81*Female+ 0.51*Age
Sally: Y'= 1.87+ 8.32*1-3.85 +0.51*29 =21.17
Jane: Y'= 1.87+ 0 -3.85+0.51* 34 = 15.4
On an average: 21-17-154= 5.77, sally earns more
e) Y'= 2.05+8.34*College- 3.8*Female+ 0.52*Age + 0.18* Northeast -1.23* midwest- 0.43*South
Nancy: Y'= 2.05+ 8.34*1-3.8*1+0.52*29 +0.18*0-1.23*0-0.43*1 =20.72
Jennifer: Y'= 2.05+ 8.34*1-3.8*1+0.52*29 +0.18*1-1.23*0-0.43*0 =21.33
Nancy earns (21.33-20.72) $0.61 then jennifer.
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