10:43 am Wed 1 Sep @ 46% Document Draw Layout Home Insert Review View na Calibri Regular (B 11 I U A. A We model the salary of the average inhabitant of Pinkland. Salaries are a function of education (expressed in years), working hours (expressed in hours), firm sales (expressed in millions of pinkies) and sector. There are 3 sectors in Pinkland, namely agriculture, industry and service. Salaries are expressed in pinkies (currency of Pinkland). The model is estimated as follows: Log(salary) = 1.2 + 0.074*educ+ 0.63*log(hours) + 0.16*log(sales) + 0.37*industry -0.13* agriculture N=800 R2 = 0.63 1/We have 3 categorical variables in the regression. Which is the base category? 2/ Interpret the coefficient on "industry" and "agriculture". 3/ Interpret the R2 of the regression