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College StatisticsAnswered question
Amirah Hayden Amirah Hayden 2022-06-04

The following computer output shows an estimated equation. Here; W: Weekly wage.
MALE: Gender, takes the value of 1 if the worker is male and 0 if female.
EDU: Education Level,
EDU1=1 if the worker has no formal education and 0 otherwise,
EDU2=1 if the worker has primary education and 0 otherwise,
EDU3=1 if the workerhas secondary and high school degree and 0 otherwise,
EDU4=1 if the worker hasbachelor, master, and/or Ph.D. degree and 0 otherwise.
EXP: Experience (thenumber of years being employed).
Dependent Variable: W
Method: Least Squares
Date: 01/02/21 Time: 09:15
Sample: 1 935
Included observations: 935
Variable Coefficient Std. Error t-Statistic Prob.
C 508.7969 49.56471 10.26531 0.0000
MALE 486.2831 20.27897 23.97967 0.0000
EDU2 37.93184 35.58875 1.065838 0.2868
EDU3 153.9977 40.51264 3.801225 0.0002
EDU4 251.2214 40.92353 6.138799 0.0000
EXP 10.28997 2.548076 4.038331 0.0001
R-squared 0.461610 Mean dependent var 957.9455
Adjusted R-squared 0.458713 S.D. dependent var 404.3608
S.E. of regression 297.4973 Akaike info criterion 14.23508
Sum squared resid 82220789 Schwarz criterion 14.26615
Log likelihood -6648.902 Hannan-Quinn criter. 14.24693
F-statistic 159.3033 Durbin-Watson stat 0.446774
Prob(F-statistic) 0.000000
a) Write out the estimated wage model below (use 1-digit for decimal):
b) Check the statistical significance of EXP, and EDU2 at 5 % level respectively(hypothesis tests) below: 6
c) Interpret the coefficient of determination below:
d) Interpret the coefficients of MALE, EDU3, and EXP below:

Almost all significance test practice problems that you will encounter below help to find solutions to your questions as the answers deal with the same equations that have been used. Start with any significance test example and you will understand that you only have to change variables to determine each value. It's exactly what makes significance test equation so popular as it provides help with more advanced probability concepts. As you look through significance test questions, look for similar patterns as these are where you must start regardless of whether you deal with a complex engineering project or statistical analysis.