Question

Find the following using the table given below:

(a) R²

(b) Standard Error for table

(c) For both independent variables find coefficient value and the significance of the linear relationship with the dependent variable

(d) Interpret the y-intercept of the table

NOTE: Wage is dependent, and Education and Experience are Independent.

Education	Experience	Wage
8	21	5.1
9	42	4.95
12	1	6.67
12	4	4
12	17	7.5
13	9	13.07
10	27	4.45
12	9	19.47
16	11	13.28
12	9	8.75
12	17	11.35
12	19	11.5
8	27	6.5
9	30	6.25
9	29	19.98
12	37	7.3
7	44	8
12	26	22.2
11	16	3.65
12	33	20.55
12	16	5.71
7	42	7
12	9	3.75
11	14	4.5
12	23	9.56
6	45	5.75
12	8	9.36
10	30	6.5
12	8	3.35
12	8	4.75
14	13	8.9
12	46	4
8	19	4.7
17	1	5
12	19	9.25
12	36	10.67
12	20	7.61
12	35	10
12	3	7.5
14	10	12.2
12	0	3.35
14	14	11
12	14	12
9	16	4.85
13	8	4.3
7	15	6
16	12	15
10	13	4.85
8	33	9
12	9	6.36
12	7	9.15
0	13	11

Answer 1

Sol:in excel

install nalaysis tool pak

Go to data>data analysis>regression

You will get

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.23442294
R Square	0.054954115
Adjusted R Square	0.016380813
Standard Error	4.53723282
Observations	52
ANOVA
	df	SS	MS	F	Significance F
Regression	2	58.65776776	29.32888	1.424667	0.250378
Residual	49	1008.737601	20.58648
Total	51	1067.395369
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	2.786802691	3.443801624	0.809223	0.422299	-4.13378	9.707381	-4.13378	9.707381
Education	0.398562918	0.251971289	1.581779	0.120134	-0.10779	0.904918	-0.10779	0.904918
Experience	0.067835886	0.05626741	1.205598	0.233762	-0.04524	0.180909	-0.04524	0.180909

SOLUTION A

R sq=0.0549

(b) Standard Error for table

S=Standard Error = 4.53723282

(c)

regression eq is

wage=2.7868+0.3986*Education+0.0678*Experience

	Coefficients	P-value
Education	0.398562918	0.120134085
Experience	0.067835886	0.233762143

p>0.05 for education and experience

Education and experience are not significant variables

(d) Interpret the y-intercept of the table

y intercept=2.7868 when Education=0 and Experience=0

that is

when a person has no education and no experience wage is 2.7868