Using data from 50 workers, a researcher estimates Wage = beta_0 + beta_1 Educat

Question

Using data from 50 workers, a researcher estimates Wage = beta_0 + beta_1 Education + beta_2 Experience + beta_3 Age + epsilon, 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. a-1. Interpret the point estimate for beta_1. As Education increases by 1 unit, Wage is predicted to increase by 1.87 units. As Education increases by 1 unit, Wage is predicted to increase by 0.48 units, holding Age and Experience constant. As Education increases by 1 unit, Wage is predicted to increase by 1.87 units, holding Age and Experience constant. As Education increases by 1 unit, Wage is predicted to increase by 0.48 units. a-2. Interpret the point estimate for beta_2. As Experience increases by 1 unit, Wage is predicted to increase by 1.87 units. As Experience increases by 1 unit, Wage is predicted to increase by 0.48 units. As Experience increases by 1 unit, Wage is predicted to increase by 1.87 units, holding Age and Education constant. As Experience increases by 1 unit, Wage is predicted to increase by 0.48 units, holding Age and Education constant. b. What is the sample regression equation? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)^y = + Education + Experience + Age c. Predict the hourly wage rate for a 23-year-old worker with 4 years of higher education and 2 years of experience (Do not round intermediate calculations. Round your answer to 2 decimal places.)^y

Explanation / Answer

Answer to all question with details:

a. C is the right answer

You should hold other variables constant

b.

D is the right intpretation

c.

y^ = 7.95 +1.87*Education + .48*expericence -.01*Age

d.

= 7.95 +1.87*4+ .48*2 -.01*23
=16.16

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