week3ans - Week 3 Answers 1 Run a regression of wage on education(educ reg wage educ Source | SS df MS Number of obs = 935 F 1 933 = 111.79 Model |

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Unformatted text preview: Week 3 Answers 1. Run a regression of wage on education (educ). reg wage educ Source | SS df MS Number of obs = 935-------------+------------------------------ F( 1, 933) = 111.79 Model | 16340644.5 1 16340644.5 Prob > F = 0.0000 Residual | 136375524 933 146168.836 R-squared = 0.1070-------------+------------------------------ Adj R-squared = 0.1060 Total | 152716168 934 163507.675 Root MSE = 382.32------------------------------------------------------------------------------ wage | Coef. Std. Err. t P>|t| [95% Conf. Interval]-------------+---------------------------------------------------------------- educ | 60.21428 5.694982 10.57 0.000 49.03783 71.39074 _cons | 146.9524 77.71496 1.89 0.059-5.56393 299.4688------------------------------------------------------------------------------ 2. Interpret the slope and the intercept of the estimated regression line. Slope: A 1 unit increase in education increases the predicted wage by 60.21....
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