Question

We are using the MegaStat plugin for Excel and I am unsure what values I need to pull out of the question to input into the plugin to get to my answer. Any help would be greatly appreciated.

Using data from 50 workers, a researcher estimates Wage = β₀ + β₁ Education + β₂Experience +β₃Age + ε, 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.

	Coefficients	Standard Error	t Stat	p-Value
Intercept	7.58	4.42	1.71	0.0931
Education	1.68	0.37	4.54	0.0000
Experience	0.35	0.18	1.94	0.0580
Age	−0.06	0.05	−1.20	0.2363

a-1.

Interpret the point estimate for β₁.

	As Education increases by 1 unit, Wage is predicted to increase by 1.68 units, holding Age and Experience constant.
	As Education increases by 1 unit, Wage is predicted to increase by 0.35 units.
	As Education increases by 1 unit, Wage is predicted to increase by 0.35 units, holding Age and Experience constant.
	As Education increases by 1 unit, Wage is predicted to increase by 1.68 units.

a-2.

Interpret the point estimate for β₂.

	As Experience increases by 1 unit, Wage is predicted to increase by 1.68 units.
	As Experience increases by 1 unit, Wage is predicted to increase by 0.35 units.
	As Experience increases by 1 unit, Wage is predicted to increase by 1.68 units, holding Age and Education constant.
	As Experience increases by 1 unit, Wage is predicted to increase by 0.35 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 29-year-old worker with 3 years of higher education and 2 years of experience. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

y^

???

Answer 1

a-1.Interpret the point estimate for β1:

As Education increases by 1 unit, Wage is predicted to increase by 1.68 units, holding Age and Experience constant.

----

a-2.Interpret the point estimate for β2.

As Experience increases by 1 unit, Wage is predicted to increase by 0.35 units, holding Age and Education constant.

b.

Regression equation:

y^ = 7.58 + 1.68 Education + 0.35 Experience + (-0.06) Age

c.

Predict the hourly wage rate for Education = 3, Experience = 2, Age = 29

y^ = 7.58 + 1.68 *3 + 0.35 *2+ (-0.06) *29

= 11.58