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1. The following regression results relate to a study of the salaries of public school teachers in a midwestern city:
Variable
Coefficient
Standard Error
t-ratio
Constant
20,720
6,820
3.04
EXP
805
258
R-squared = 0.684; n = 105
Standard error of the estimate = 2,000
EXP is the experience of teachers in years of a full-time teaching
a. What is the t-ratio for EXP? Does it indidcate that experience is a statistically significant determinant of salary if a 95 percent confidence level is desired?
b. What percentage of the variation in salary is explaned by this model?
c. Determine the point estimate of salary for a teacher with 20 years of experience.
d. What is the approximate 95 percent confidence interval for your point estimate from part (c)?
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