a,b Using model, calculate bo and b1. Interpret magnitude of b1. Coefficients are individually significant (two-tailed, a=0.05). Show all formulas. No excel.

3. Use the data on earnings and experience to answer following questions: (Earnings in 000s) (Experience in years) Y 30 33 38 UIA AWNPA 40 41 45 (a) [3 points] With the model Yi = Bo + B1Xi + &;, calculate bo and b1. Interpret the magnitude of b1 . (b) [3 points] If Spo = 0.72 and sp, = 0.21, are the coefficients individually statistically significant (two-tailed, a = 0.05)