Refer to the study in Problem 1. Recall the vendors\' mean average earnings, E(y
ID: 2931648 • Letter: R
Question
Refer to the study in Problem 1. Recall the vendors' mean average earnings, E(y) was modeled as a first-order function of age (xi) and hours worked (x2). Now consider the interaction model E(y) = Bo + Blu-B2X2 + B3X1X2. The SAS printout for the model is displayed belovw The REG Procedure Dependent Varlable: EARNINGS Analysis of Varianc Sun of Squares Mean Square Source DF F Value Pr > F Mode 1 Error Corrected Tota 5287427 3331000 8618428 5.82 0.0124 1762476 302818 Root MSE Dependent lean Coeff Var S50.2892 -Square 2577.13333 Adj R-Sq 0.6135 0.5081 21.35276 Paraneter Estinates Standard Parameter Estimate Var iable DF Error t Value Pr t Intercept AGE HOURS AGEHAS 041.89440 -13.23762 103.30564 3.62096 1303.59326 29.23395 162.01356 3.84044 0.80 -0.45 0.64 0.94 0.4411 0.6595 0.5368 0.3660 (a) Give the least squares prediction equation. hat is the estimated slope relating annual earning (y) to age (xi) when the (c) What is the estimated slope relating annual earnings (y) to hours worked (x2) (d) Give the null hypothesis for testing whether age (xi and hours worked (xx (e) Find the p-value of the test in part d. Give the appropriate conclusion in the number of hours worked (xx) is 10? Interpret the results when age (xi) is 40? Interpret the result. interact. words of the problemExplanation / Answer
A) least square prediction equation
Y =1041.89 - 13.2376*X1 + 103.3056 *X2 + 3.62096 * X3
Where
X1 = Age
X2= Hours
X3=AgeHrs
B) Slope of annual earning (Y) to age (X1) when X1=10
Slope = - 13.23762
when X1=10
whenAge( X1)=10 then Annual earnins (Y) will decreases -13.2376*10=132.376 unit .
C)What is eestimated slope relaing annual earnings(Y) to hours work
Slope = 103.305
d) null hypothesis for testing whether age ( X1) and Hours( X2) interact .
H0 : B3 = 0
Vs
H1 : B3 not equal to 0
e) Using above output the p-value of age ( X1) and Hours( X2) interact is
P-VALUE= 0.3660
Conculsion : see p-values is greater than 0.05 so we fail to Reject Ho
that means intracction of Age and hours is not significant.
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