1.During discussions on how to reduce poverty, it is argued that because earnings depend on level of education and years of work experience, the government should spend resources on educating its citizenry. The following table gives data on monthly salary, number of years spent in school, and the total number of years of work experience. (8 points)

Salary52 4448776848598328612769

Education161213201816141812161216

Experience 61015811212469218

3-a. Formulate an appropriate regression model.

3-b. Using MINITAB estimate the model.

3-c. Interpret the meaning of the constant term and the regression coefficients.

3-d What are the values of the standard deviation of the errors, coefficient of multiple determination, and the adjusted coefficient of multiple determination?

3-e. Which of the two concepts - coefficient of multiple determination and the adjusted coefficient of multiple determination you would prefer in order to assess your regression model, and why?

3-f. Is the argument -- education increases earnings -- substantiated by the estimated regression model. Use = .025.

3-g. What is expected salary of a person with 11 years of experience and 18 years of education?

3-h.If government pursues as aggressive education policy, which leads to an gain in schooling by 1 year, what will be its impact on earnings.