Download the data set test5.csv

Import the data set test5. Consider the least squares model the hourly earnings (HRLYEARN) in dollars as the dependent variable and the level of education (EDUC), and durationsof job experiences (TENURE) in months as explanatory variables.

a) Write the equation for the linear population model. Then, write the equation for the linear regression model.

b) Write an interpretation for b1 and b2. For full points make your interpretation as specific as possible. For example, include units.

c) Calculate the predicted earning of individual with level of education 3, EDUC=3 and 12 months of experiences, TENURE=12. For full points, show your work.

d) Testing the Normality of the error term and comments.

e) Does adding TENURE as an additional explanatory variable improve the model predictability? Explain with pieces of evidence.