Exercise 14-37 Algo Using data from 50 workers, a researcher estimates Wage = 0

Question

Exercise 14-37 Algo

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 35-year-old worker with 3 years of higher education and 2 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

a-1) As Education increases by 1 unit, Wage is predicted to increase by 1.23 units, holding Age and Experience constant.

a-2) As Experience increases by 1 unit, Wage is predicted to increase by 0.53 units, holding Age and Education constant.

b) y = 8.23 + 1.23 *Education + 0.53 *Experience + (-0.08) *Age

c) Predicted wage = 8.23 + 1.23*3 + 0.53*2 - 0.08*35 = 10.18

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