SUMMARY OUTPUT \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Regression Statistics } & & & & & & & \\ \hline Multiple R & 0.440823761 & & & & & & & \\ \hline R Square & 0.194325588 & & & & & & & \\ \hline Adfusted R Square & 0.187682808 & & & & & & & \\ \hline Standard Error & 367.0436711 & & & & & & & \\ \hline Observations & 857 & & & & & & & \\ \hline \multicolumn{9}{|l|}{ ANOVA } \\ \hline & df & SS & MS & F & Significance F & & & \\ \hline Regression & 7 & 27587579.08 & 3941082.725 & 29.25365067 & 2.81352E36 & & & \\ \hline Residual & 849 & 114378177 & 134721.0565 & & & & & \\ \hline \multirow[t]{2}{*}{ Total } & 856 & 1419657561 & & & & & & \\ \hline & Coefficionfs & Standand Error & tStat & Puvalue & Lowner 95\% & Upeer 95\% & Lomar 95.0% & Upper 95.0\% \\ \hline Intercept & -584.7343343 & 134.5050556 & -4.347303762 & 1.54532E05 & -848.7357596 & -320.732909 & -848.7357596 & -320.732909 \\ \hline 10 & 3. 654892731 & 1.03364387 & 3.535930352 & 0.000428338 & 1.62609572 & 5.683689742 & 1,62609572 & 5.683689742 \\ \hline Knowlodge & 7.575668528 & 1.953145849 & 3.878700883 & 0.000113134 & 3.742107883 & 11.40922917 & 3.742107883 & 11.40922917 \\ \hline YearsEdu & 45.03259208 & 7.834435472 & 5.748032803 & 1.25863E-08 & 29.65545907 & 60.4097251 & 29.65545907 & 60.4097251 \\ \hline YearsExperience & 13.95654903 & 3.55016545 & 3.931239044 & 9.13938E05 & 6.988418837 & 20.92467922 & 6.988418837 & 20.92467922 \\ \hline Tenure & 4.814519783 & 2.630077127 & 1,830562204 & 0.067516312 & -0.34769592 & 9.976735487 & -0.34769592 & 9.976735487 \\ \hline MomEdu & 10.38330433 & 4.91055063 & 2.114488804 & 0.034764457 & 0.745061664 & 20.02154699 & 0.745061664 & 20.02154699 \\ \hline Numsiblings & -1.805978589 & 5.996006006 & -0.301160791 & 0.703361055 & .13 .575829958 & 9.9639332403 & -13.57588958 & 9.963932403 \\ \hline \end{tabular} We wish to examine the relationship between monthly earnings and several factors that may influence it: IQ, knowledge, years of education, years experience, years at current job, mother's education, and Number of Siblings. Using the provided data set, estimate this multiple regression equation and write it down. (hint: make sure to include the standard errors and use the correct variable names) IQ Knowledge YearsEdu YearsExperience Tenure MomEdu NumSiblings How would you interpret the intercept coefficient (B0) ? (you are allowed to answer in Arabic) Question 3 Not yet answered Marked out of 1.00 Flag question How would you interpret the coefficient of YearsEdu? (you are allowed to answer in Arabic) Question 4 Not yet answered Marked out of 1.00 Flag question What is the expected MonthlyEarnings of an employee with following information: (write it in numbers to the closes one decimal place) What is the exact critical value (closest two decimal places) for performing the test of significance (t-critical) for any of the coefficients? (Hint: use the excel formula and make sure it is included in the excel file that you submit) Answer: Question 6 Not yet answered Marked out of 1.00 Flag question What is the test statistic (t-stat) for testing if the intercept (B0) is different from zero? Write it to the closest two decimal places. Answer: Question 7 Not yet answered Marked out of 1.00 Flag question Using the t-test, is the Tenure coefficient statistically significant? a. Yes b. No c. Not enough information Question 8 Not yet answered Marked out of 1.00 Flag question Using the p-value, is the YearsEdu coefficient statistically significant? a. Yes, because the p-value is greater than 5% b. No, because the p-value is greater than 5% c. Yes, because the p-value is less than 5% d. No, because the p-value is less than 5% What is the value of R-squared? (Round to two-decimal places) Answer: Question 10 Not yet answered Marked out of 1.00 Flag question Interpret R-squared Question 11 Not yet answered Marked out of 1.00 Flag question Is the overall regression model statistically significant? a. No, because some of the coefficient like NumSiblings are not statistically significant. b. No, because the Significance F is less than 5% c. Yes, because the Significance F is less than 5% d. Yes, because the Significance F is more than 5% e. No, because the Significance F is more than 5% f. Yes, because the adjusted Rsquared is more than 15% Question 12 Not yet answered Marked out of 2.00 Flag question Assume you wish to test if the impact of YearsEdu is twice that of YearsExperience (B3=2*B4). Write down the restricted equation (auxiliary regression) for performing this test (in abstract form). What is the F-statistic for testing the null hypothesis in Q12? Show the equation that you used to calculate F stat in the Excel file. Write the answer using two decimal places and make sure to use the correct sign. Answer: What is f-critical for testing the null hypothesis in Q12? (Note: use the excel formula and make sure it is included in the excel file that you submit) - round to two decimal places Answer: Based on your answer to questions 13 and 14 , do you reject HO (as specified in Q12)? a. Fail to reject HO b. Reject HO c. Inconclusive Identify and explain possible violations of the CRLM assumptions for OLS (explain ways in which our multiple regression can possibly violate any of the CRLM assumptions, point out the assumptions that might be violated and explain why) (4 marks). You can provide your answers in Arabic. Question 17 Not yet answered Marked out of 3.00 Flag question Identify and explain three problems with R2 as a goodness of fit measure. Offer one possible solution for each of these problems (three solutions in total)