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b) A researcher wants to find if there is a relationship between annual income (Y, measured in Brazilian real) and age of workers (X, measured

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b) A researcher wants to find if there is a relationship between annual income (Y, measured in Brazilian real) and age of workers (X, measured in years) in rural Brazil. He obtained a random sample of 4900 workers, obtaining the following results from a simple bivariate regression: f: = 2088.95 + 18420.56 =1 X.- (780.80) (1076.01) R2 = 0.05 Where the figures in parenthesis are the standard errors. Diagnostic tests (not reported here) do not show signs of model mis-specification. (i) Interpret the estimated coefficients. (ii) Estimate the confidence interval that contains the true population parameter on age at the 95% level. (iii) Test for the statistical significance of the relationship between annual income and age at the 1% significance level. (iv) Interpret the coefficient of determination obtained above

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