Question

Let us consider the salary (y), the years of experience(X1) and
the years of schooling (X2) for 50

employees of the Georgia Pacific Company in Crossett, Arkansas. Our
goal is to build a model that will

satisfy all of our assumptions, so that we can use years of
experience and years of schooling to predict

salaries. The data is presented below.

X1 X2 Y X1 X2 Y X1 X2 Y

7 12 26075 21 12 43268 28 16 99139

28 14 79370 4 11 16105 23 12 52624

23 12 65726 24 14 65644 17 14 50594

18 12 41983 20 14 63022 25 14 53272

19 16 62309 20 12 47780 26 12 65343

15 12 41154 15 12 38853 19 12 46216

24 14 53610 25 14 66537 16 16 54288

13 11 33697 25 12 67447 3 10 20844

2 12 22444 28 12 64785 12 12 32586

8 12 32562 26 16 61581 23 16 71235

20 12 43076 27 12 70678 20 12 36530

21 14 56000 20 12 51301 19 14 52745

18 14 58667 18 12 39346 27 16 67282

7 10 22210 1 16 24833 25 16 80931

2 11 20521 26 12 65929 12 11 32303

18 12 49727 20 16 41721 11 16 38371

11 16 33233 26 14 82641

A. Write down the model

B. Write down the prediction equation

C. SSE=

D. S=

E. R^{2=}

F. Interpret R^{2}

G. in testing if X_{1} is a significant variable , what
is the test statistic ? (T = )

Answer #1

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