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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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