Question

On the textbook's companion website click on Data for Empirical Exercises and Test Bank (Updated Edition) , you will find the data file Earnings_and_H eight, which contains data on earnings, height, and other characteristics of a random sample of U.S. workers. Run a regression of Earnings on Height using data for male workers only. First input the data into S TATA . Before you run the regression, use the f ollowing STATA command to drop the fe male workers from the data set. drop if sex==0 (sex is a binary variable which is equal to 1 if the person is male, and is equal to zero if the person is female). a. What is the estimated intercept? What i s the estimated slope? What is the R 2 ? What is the standard error of the regression (SER)? b. Earnings is annual labor earnings. Height is measured in inches. Use the estimated regression to predict earnings for a male worker who is 71 inches tall.

Use this link below to access the data. Go to the earnings and height data.

http://wps.aw.com/aw_stock_ie_3/246/63148/16166073.cw/content/index.html

Answer 1

## By using Minitab

MTB > Regress 'earnings' 1 'height';
SUBC> Coefficients 'COEF1';
SUBC> Constant;
SUBC> Brief 2.

The regression equation is
earnings = - 513 + 708 height

Predictor Coef SE Coef T P
Constant -513 3387 -0.15 0.880
height 707.67 50.49 14.02 0.000

S = 26777.2 R-Sq = 1.1% R-Sq(adj) = 1.1%

Analysis of Variance

Source DF SS MS F P
Regression 1 1.40863E+11 1.40863E+11 196.46 0.000
Residual Error 17868 1.28117E+13 717020563
Total 17869 1.29526E+13

a) T statistics for slope is 14.02 and the P value is 0.000 hence the slope is statistically significant at 5% level of significance.

b) The 95% confidence interval for slope is given by

(608.709,806.63)