Solve question 1

Q-5) Consider the following more complex regression (4 points) [Do not forget to create a dummy variable for marital] SUMMARY OUTPUT SUMMARY OUTPUT Regression Statistic Regression Statistics Multiple R 0.449903635 Multiple R 0.424245 R Square 0.202413281 R Square 0.179984 Adjusted R Square 0.193889453 Adjusted R: 0.173743 Standard Error 0.370094024 Standard Er 0.37469 Observations 663 Observation 663 ANOVA ANOVA SS MS F ignificance F SS MS F Significance F Regression 22.76808665 3.252584 23.74676 7.64E-29 Regression 20.24513 4.049027 28.84071 1.72E-26 Residual 655 89.71507927 0.13697 Residual 657 92.23803 0.140393 Tota 662 112.4831659 Total 562 112.4832 Coefficients Standard Error t Stat P-value Lower 95% Upper 95%% Coefficients andard Erre t Stat P-value Lower 95% Upper 95% Intercept 5.268182736 0.147590957 35.69448 8.9E-156 4.978374 5.557991 Intercept 5.356361 0.147539 36.30475 3.6E-159 5.066656 5.646065 educ 0.063879223 0.007932076 8.05328 3.81E-15 0.048304 0.079455 educ 0.076726 0.007429 10.32766 2.84E-23 0.062138 0.091314 exper 0.008346972 0.015112736 0.552314 0.580922 -0.021328 0.038022 exper 0.010499 0.015292 0.686541 0.492614 -0.019528 0.040526 exper*2 0.000420199 0.000653438 0.643059 0.520411 -0.000863 0.001703 exper*2 0.000288 0.000661 0.436086 0.662918 -0.001009 0.001586 tenure 0.008837739 0.003029367 2.917355 0.003651 0.002889 0.014786 tenure 0.009104 0.003065 2.970336 0.003083 0.003086 0.015122 married 0.200188777 0.048387404 4.137208 3.97E-05 0.105176 0.295202 married 0.200247 0.048984 4.088044 4.89E-05 0.104064 0.29643 meduc 0.013936399 0.006328796 2.202062 0.028009 0.001509 0.026364 feduc 0.011678126 0.00561083 2.081355 0.037789 0.000661 0.022696 In(wage) = BO + B1 educ + 32 exper + 83 exper2 + 84 tenure + 85marital + 6meduc + 87 feductu 1. Are coefficients on parental education variables statistically significant at 5%? State the hypothesis clearly. (Hint: Parent education has two variables meduc, fedus) (2 points)