Author Question: Write the model specification and define the variables for a multiple regression model to predict ... (Read 113 times)

khang · **on:** Jun 24, 2018

Write the model specification and define the variables for a multiple regression model to predict wages in U.S. dollars as a function of years of experience and country of employment, indicated as Austria, France, Germany, Japan, and United States.

What will be an ideal response?

Question 2

A point estimate is used ________.

A) because it's easier to use all the values in the data set than a single value
B) to estimate the value of a population estimate
C) when the population parameter is known
D) only when the population proportion is not known

CharlieArnold · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Based on the data, the indicators are:
Y = 0 + 1X1i + 2X2i + 3X3i + 4X4i + 5X5i + i
Where
Yi = wages
X1 = Years of experience
X2 = 1 for Austria, 0 otherwise
X3 = 1 for France, 0 otherwise
X4 = 1 for Germany, 0 otherwise
X5 = 1 for Japan, 0 otherwise
The excluded category consists of wages in the United States.

Answer to Question 2

B