6. The following gretl output provides summary statistics on hours of work (HOURS, measured in hundreds of hours worked) and marginal tax rates (MTR, the rate at which an additional dollar of income is taxed) in 1987 for a sample of 753 women. MTRY HOURS X Mean 0.6789 7.406 Median 0.6915 2.880 S.D. 0.08350 8.713 Min 0.4415 0.000 Max 0.9415 49.50 Gretl also reports that the correlation between HOURS and MTR is cort (HOURS, MTR) = -0.19192674 a) What is the equation for a regression of HOURS on MTR? (b) How do you interpret the slope coefficient b from this regression? Be precise. What do you conclude about the effect of taxes on labor supply? (c) Gretl reports that the sum of squared errors is 54987.98. Show that the R2 from the regression is about 0.037. (d) What does it mean that the R2 is 0.037? 6. The following gretl output provides summary statistics on hours of work (HOURS, measured in hundreds of hours worked) and marginal tax rates (MTR, the rate at which an additional dollar of income is taxed) in 1987 for a sample of 753 women. MTRY HOURS X Mean 0.6789 7.406 Median 0.6915 2.880 S.D. 0.08350 8.713 Min 0.4415 0.000 Max 0.9415 49.50 Gretl also reports that the correlation between HOURS and MTR is cort (HOURS, MTR) = -0.19192674 a) What is the equation for a regression of HOURS on MTR? (b) How do you interpret the slope coefficient b from this regression? Be precise. What do you conclude about the effect of taxes on labor supply? (c) Gretl reports that the sum of squared errors is 54987.98. Show that the R2 from the regression is about 0.037. (d) What does it mean that the R2 is 0.037