Question

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

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. R2=

F. Interpret R2

G. in testing if X1 is a significant variable , what is the test statistic ? (T = )

A)

B)

C)

D)

E)

F)

G)

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