Scribd
Upload
91 views1 page

In-Class Problem Set # 3 (Additional Problem) : ECON 310 Name(s)

This document contains an analysis of variables that predict salary, including education, experience, and their relationship. It includes outputs from linear regression models in R showing: 1) Both education and experience are significant predictors of salary at the 1% level. 2) Experience has a strong positive relationship with salary, as each additional year of experience is associated with $41,663 higher salary on average. 3) Education also has a positive relationship with salary, but it is only significant at the 5% level. Each additional year of education corresponds to $20,853 higher salary on average.

Uploaded by

tranthanhnha94
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
91 views1 page

In-Class Problem Set # 3 (Additional Problem) : ECON 310 Name(s)

This document contains an analysis of variables that predict salary, including education, experience, and their relationship. It includes outputs from linear regression models in R showing: 1) Both education and experience are significant predictors of salary at the 1% level. 2) Experience has a strong positive relationship with salary, as each additional year of experience is associated with $41,663 higher salary on average. 3) Education also has a positive relationship with salary, but it is only significant at the 5% level. Each additional year of education corresponds to $20,853 higher salary on average.

Uploaded by

tranthanhnha94
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

ECON 310

Name(s):

In-class Problem Set # 3 (additional problem)


Variabless used in the analysis: Salary (in $10, 000) Education (in years of schooling) Experience (in years) A partial output from R follows:
> fit <- lm ( salary ~ educ + exper ) > summary ( fit ) Call : lm ( formula = salary ~ educ + exper ) Residuals : Min 1Q -3.3578 -1.2508

Median 0.0398

3Q 1.1407

Max 4.4413

Coefficients : Estimate Std . Error t value Pr ( >| t |) ( Intercept ) -0.51884 1.59686 -0.325 0.7459 educ 0.20853 0.10123 2.060 0.0421 * exper 0.41663 0.02864 14.549 <2e -16 * * * --Signif . codes : 0 * * * 0.001 * * 0.01 * 0.05 . 0.1 1 Residual standard error : 1.621 on 97 degrees of freedom Multiple R - squared : 0.6924 , Adjusted R - squared : 0.686 F - statistic : 109.2 on 2 and 97 DF , p - value : < 2.2 e -16

> anova ( fit ) Analysis of Variance Table Response : salary Df Sum Sq Mean Sq F value Pr ( > F ) educ 1 17.42 17.42 6.6279 0.01155 * exper 1 556.26 556.26 211.6726 < 2e -16 * * * Residuals 97 254.91 2.63 --Signif . codes : 0 * * * 0.001 * * 0.01 * 0.05 . 0.1 1

1. Is there enough evidence at the 5% signicance level to infer that the model is useful in predicting salary? 2. Is there enough evidence at the 5% signicance level to infer that the years of experience and the salary are linearly related? 3. Is there enough evidence at the 1% signicance level to infer that the years of experience and the salary are positively related? How would your answer change if the level of signicance was 5%? 4. Is there sucient evidence at the 5% signicance level to infer that the years of education and the salary are negatively linearly related? 5. Interpret the coecient b1 . 6. Interpret the coecient b2 .

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy