Earnings 2019, part 2.

Here is the statistical output for the multiple regression model analysis on the variables considered in Exercise 11.

ANOVA df SS MS F Significance F Regression 2 302080475.7 151040237.9 65.15182 4.01431E-08 Residual 15 34774218.03 2318281.202 Regression Statistics Multiple R 0.9470 R Square 0.8968 Adjusted R Square 0.8830 Standard Error 1522.5903 Variable Coefficient SE(Coeff) t-ratio P-value Intercept 7454.3145 2127.9619 3.5030 0.0032 Number of jobs (thousand) -33.5196 8.1426 -4.1166 0.0009 Male Mean Annual Pay (£) 0.5981 0.1095 5.4634 0.0001

a) Write the regression model.

b) What does the coefficient of Male Mean Annual Pay mean in the context of this regression model?

c) For an occupation which has 80 thousand jobs and male mean annual pay of £7,500, what does this model estimate the mean annual pay would be?

d) Is this likely to be a good prediction? Why do you think that?