Assuming MLR.1 through MLR.6 hold, answer this reporter\'s questions using the f

Question

Assuming MLR.1 through MLR.6 hold, answer this reporter's questions using the following regression of the hourly wage in dollars (wage) on years of education (educ) number of dependents (numdep), and years of experience (exper regress wage educ numdep exper df Nunber of obs F 3, 522)51.87 Prob> F R-squared8.2296 Adj R-squared -8.2252 Root MSE Source 5S M5 526 Model 1644.27877 548.898258 Residual 5516.14352 522 18.5673247 Total 7160.41429 525 13.6388844 3.2se7 wage Cf. Std. Err t p>It! [95% Conf. Interval] educ | 6677621 553717 12.86 8.88 5589834 7765489 de2021822 .1161096

Explanation / Answer

The fitted regression equation for this study is,

wages = -3.9390 + 0.6678 * Education + 0.2021 * Numdepedents + 0.7258 * Experiance

Researcher is intrested in check the year of education is affected on wages 10 times than experiance.

Test of Hypothesis:

H0: The wages is not dependent on the predictor variable.

against,

H1: The wages does depend on predictor.

Test Statistics,

if the p-value is larger than the 0.01 level of significance then we accept the null hypothesis.

from the above results,

The variable education and experience both have p-values less than 0.01

so, we reject the null hypothesis at the 1% level of significance.

so if education and experience increases wages also increases.

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