Question

The data set wages educ (click the link to open the Excel file) contains data from a survey on hourly wage (in dollars) and number of years of formal education (educ). For example, if educ= 13, a person has completed one year of college after high school. Using the Data Analysis Toolpak (or, if you happen to know how to use other software), fit the simple linear regression model below to the data: wage = Bo+Bi(educ) + € Write out the fitted model by filling in the slope and y-intercept below. Input your answers to three (3) decimal places. wage = (educ)

educ	wage
17	8.19
12	18.42
12	23.38
12	10.24
12	20.47
12	12.90
12	31.03
17	14.33
14	12.28
10	17.77
16	15.56
12	13.31
16	15.76
11	9.62
12	14.08
13	17.93
11	29.68
12	24.24
11	17.07
16	33.74
14	36.85
12	18.42
16	10.85
18	28.37
9	8.72
13	8.27
12	16.83
14	24.07
12	11.59

Answer 1

The statistical software output for this problem is:

Simple linear regression results: Dependent Variable: wage Independent Variable: educ wage = 12.379142 + 0.43414442 educ Sample size: 29 R (correlation coefficient) = 0.12482148 R-sq = 0.015580401 Estimate of error standard deviation: 7.9886224

Hence,

Regression equation will be:

= 12.379 + 0.434 (educ)

Wage