Question
Consider the following data set. C l is years of education, C 2 is years of jobexperience, C 3 is age, and C 4 is
Consider the following data set. Cl is years of education, C2 is years of jobexperience, C3 is age, and C4 is annual salary.
Row | Education | Experience | Ag | Salary |
1 | 10 | 20 | 45 | 55139 |
2 | 10 | 5 | 23 | 48937 |
3 | 10 | 19 | 36 | 57624 |
4 | 11 | 15 | 50 | 58170 |
5 | 11 | 16 | 42 | 62202 |
6 | 11 | 8 | 30 | 51646 |
7 | 11 | 4 | 21 | 52563 |
8 | 12 | 10 | 34 | 49434 |
9 | 12 | 8 | 27 | 55153 |
10 | 12 | 18 | 38 | 63882 |
11 | 13 | 6 | 25 | 46067 |
12 | 13 | 10 | 46 | 60886 |
13 | 14 | 10 | 38 | 57190 |
14 | 14 | 2 | 22 | 52094 |
15 | 15 | 8 | 32 | 60620 |
16 | 16 | 5 | 49 | 59843 |
17 | 16 | 4 | 28 | 57288 |
18 | 17 | 7 | 33 | 67151 |
19 | 18 | 3 | 27 | 61313 |
20 | 19 | 3 | 32 | 64175 |
a. Estimate the relationship:
C4 = a + b(Cl)+c(C2)+d(C3)
b. Test the hypothesis that the entire model (C1, C2, and C3 combined) does not explain a significant amount of variation inthe dependent variable at the 5% level of significance.
c. What fraction of the variation in annual salary is explained by education, experience, and age?
d. Calculate a 90% Confidence Interval for expected income for a person with 12 years of education, 10 years of experience, and who is age 30.
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