(TCO E) Southern Textiles Inc. wishes to predict employee wages (WAGES, in $1000) by using employee’s experience (EXP, months of service) and the employee’s education (EDUC, 0=no college degree, 1=college degree). A sample of 20 employees is selected at random. The data is given below:
a. Analyze the above output to determine the multiple regression equation.
b. Find and interpret the multiple index of determination (R-Sq).
c. Perform the t-tests on β ˆ 1 and on β ˆ 2 (use two tailed test with (= .05). Interpret your results.
d. Predict the wage for an individual having 48 months of experience and a college degree. Use both a point estimate and the appropriate interval estimate.
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