Business Econ Homework Help - Essay Prowess

(4.5 pts.) b. Clearly interpret the numerical values of estimated coefficients of our explanatory variables which are years of education, years of experience and gender.

( 1 pts.) c. Interpret the numerical value of adjusted R-square.

(4.5 pts.) d. At 10 percent level of significance, determine whether each explanatory variable makes a contribution to the regression model. Show your work.

(2 pts.) e. At 10 percent level of significance, determine whether there is a significant relationship between annual salary on the one hand and the three explanatory variables on the other hand. Show your work.

(1 pt.) f. Predict the annual salary of a female manager with 15 years of experience and 20 years of education. Show your work.

(6 pts.) g. Now, drop the education and gender variables from the full model and run a regression of annual salary on the years of experience. Using the hypothesis testing procedure reviewed in chapter 16(section 16.2), test the null hypothesis that managers years of education and gender add no explanatory power to the model. Here you compare SSE of your full model (model with all independent variables) with the SSE of reduced model(model with years of experience as the only Independent variable) and conduct a hypothesis test to decide which model has statistically lower SSE and thus would be preferred model. Please make sure to specify your null and alternative hypothesis in this part and conduct your test at 10% level of significance. Write down the conclusion of your hypothesis test.