Using data from 50 workers, a researcher estimates Wage = β0 +β1 Education + β2 Experience +β3 Age + ε, where Wage is the hourlywage rate and Education, Experience, and Age are the years ofhigher education, the years of experience, and the age of theworker, respectively. A portion of the regression results is shownin the following table. Coefficients Standard Error t Stat p-valueIntercept 7.42 4.14 1.40 0.0524 Education 1.53 0.39 3.65 0.0002Experience 0.47 0.20 3.53 0.0026 Age −0.07 0.08 −0.19 0.8130 a-1.What is the point estimate for β1? 1.53 0.47 a-2. Interpret thisvalue. As Education increases by 1 unit, Wage is predicted toincrease by 1.53 units, holding Age and Experience constant. Sameinterpretation by using 0.47 or -0.07 a-3. What is the pointestimate for β2? 0.47 1.53 a-4. Interpret this value. Sameinterpretation by using 1.53 or -0.07 As Experience increases by 1unit, Wage is predicted to increase by 0.47 units, holding Age andEducation constant. b. What is the sample regression equation?(Negative value should be indicated by a minus sign. Round youranswers to 2 decimal places.) y-hat = + Education + Experience +Age c. What is the predicted value for Age = 40, Education = 4 andExperience = 3. (Do not round intermediate calculations. Round youranswer to 2 decimal places.) y-hat
