A regression of average weekly earnings (AWE, measured in dollars) on age (measu

Question

A regression of average weekly earnings (AWE, measured in dollars) on age (measured in years) using a random sample of college-educated full-time workers aged 25-65 yields the following: AWE -689.7330 +9.5040 x Age, R230.023, SER 617,9 The coefficient shows the marginal effect of Age on AWE: that is, AWE is expected to increase by for each additional year of age. is the intercept of the regression line. It determines the overall level of the line. (Round your responses to four decimal places) The standard emor of the regression (SER) is 617.9 What are the units of measurement for the SER? O A. Unit-free. O B. Dollars per week. O C. Dollars. O D. Dollars per year. The regression R is 0.023. What are the units of measurement for the R O A. Unit-free. O B. Dollars per week. O C. Dollars per year. O D. Dollars. What is the regression's predicted earnings for a 45-year-old worker? The regression's predicted earnings for a 45-year-old worker are $D Round your response to two decimal places. he regression give reliable predictions for a 78-year-old worker? O A. No, the oldest worker in the sample is 65 years old, 78 years is far outside the range of the sample data O B. Yes, although the oldest worker in the sample data is 65 years old, the model is developed to make forecasts and predictions for workers younger than 25 years of age and older than 65 years of age. Given what you know about the distribution of earnings, do you think it is plausible that the distribution of errors in the regression is normal? O A. No, the distribution of eamings is negatively skewed and has kurtosis smaller than the normal. O B. Yes, the distribution of eamings is symmetric and thus nomal Nn the di but kewed and h kurt

Explanation / Answer

coefficient 9.5040 shows the marginal.................increase by 9.5040

689.7330 is the intercept...........

option B dollars per year

option A unit freee

predicted earning =689.7330+9.5040*45=1117.413

for 78 year old option A

option B is correct Yes the distribution ..

samle mean of AWE =689.7330+9.5040*41.2=1081.298

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