Question
2. Data 3-11 contains data on the salary (in thousands of dollars) and the number of years since a Ph.D. (Years) for a sample of
2. Data 3-11 contains data on the salary (in thousands of dollars) and the number of years since a Ph.D. (Years) for a sample of 222 professors at various universities.
Estimate the model( i.e., run the regression):
SALARY = + Years + .
a. What do you expect should the sign of coefficients should be? Explain why you think it is positive or negative.
b. Based on your results, how much does one more year of experience add to the average salary of professors.
c. List other variables that may affect professor salary that you might want to include in this study.d. Based on the Significance F, is the overall regression statistically significant? Explain how you arrived at that conclusion..
e. Is the coefficient of YEARS statistically significant (from zero)? Explain how you arrived at that conclusion..
DATA 3-11:
Salary:
105.2
91.3
72.5
74.3
103.5
117.5
64.2
86.7
81.5
98
91.2
91.3
93.1
83
80
55.9
66
60.6
56.5
53.9
56.5
43.9
48
48
47.9
48.2
55
53
52
100.6
78.2
128.1
100.4
58.1
108.5
75.3
72.2
78.3
66.3
91.3
129
104
55.3
51.3
53
52
55
52.4
128
60.4
78.2
135
78.3
104
108
73
98
97.4
80
72.2
98
75
70
70
65
70
53
55
47.8
51
55
52.5
50.5
50.5
50
84.4
74.6
108.3
82.2
91.5
83.8
80.1
88
81.9
88.6
88.6
75.5
85
100.2
115.2
74
77
80
71.2
74.4
81.5
92.6
122.5
51.9
55.6
41.3
63.3
62.4
70.5
53.5
47.9
45.8
51.9
47.2
87.7
97.8
99.3
77.5
87.5
72.1
92.5
83.2
66.7
107
83.6
68.1
102.8
100.5
67
94.3
114.5
90
87.168
85.5
90
104
76.2
98.5
89
82
62.9
65.7
61.2
78.5
68
64
64.8
69
74
48.7
49.5
50.7
46
50
50.5
50
48.7
126
121
121
121
121
121
121
120.5
116.5
115.7
115.485
114.92
114.5
113.33
112
109.65
107.64
105.155
100
97
95.8
90.045
90
87
85.5
73
60
57.85
54.445
53.5
52.65
51.85
51.75
50.25
50.25
50
50
153
135
121
107.5
103
91
93
83
70
68
66.5
66
82
74
60.5
58
57.5
55
54
54
51
51
51
Years:
36
30
29
29
28
26
26
25
25
23
20
19
19
17
16
12
19
14
10
10
8
8
10
8
8
5
4
3
3
1
29
18
17
30
22
18
14
29
24
33
16
31
13
21
10
10
12
29
14
27
32
15
23
7
2
3
6
3
20
25
13
45
25
30
14
25
23
42
13
34
25
13
7
9
7
9
2
6
9
5
5
2
4
4
3
17
27
37
12
19
25
36
18
22
14
21
27
27
25
35
19
34
35
35
34
16
12
23
14
15
26
6
7
13
26
5
4
8
4
38
37
31
31
31
30
30
27
29
28
27
25
24
24
22
22
22
22
21
21
20
19
19
18
15
12
12
11
10
9
8
8
7
14
11
6
5
4
3
3
2
28
26
37
18
16
28
22
34
28
34
31
40
40
28
17
26
26
44
21
15
27
29
10
6
13
5
9
7
2
2
1
1
28
15
30
25
29
33
18
20
27
21
26
12
20
11
10
11
10
14
7
6
3
4
2
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Econometrics By Example
Authors: Damodar Gujarati
2nd Edition
1137375019, 9781137375018
