stats regression (1 Viewer)

[mouse]

Help!

Let us suppose that besed on the data from 50 major cities and environmental
economist estimated a wage regression as follows:

WAGE = 103.7 - 1.2X1 - 2.1X2 + 3.6X3 + 2.3X3 R2 = 0.55

Where:

WAGE is the annual wage measured in $1000.
X1 is an index of recreational oppurtutnities.
X2 is an index of educational oppurtunities.
X3 is an index of crime (crime rate).
X4 is an index of air pollution.

The above regression (especially R2) tells us that 55 percent of the variability in WAGE is explained by the regresion of WAGE on the explanatory
variables X1, X2, X3, X4.

The regression coefficient (-2.1) associated with the explanatory variable X2 can be interpreted as follows:

All else equal, if educational oppurtunity index of a city A is 1 unit more than the same index of city B, then the annual wage rate of city A is $2100 less than in city B. That is a person ho has to work in city B with less educational oppurtunity compared to city A must be compensated trough his/her wage by an additional amount of $2100.

Your task in this problem is to interpret in the same manner the coeeficent associated with the variable X4, the air pollution variable.

Thanks!

 

[:: ck ::]

i got 103....

just kiddin.. wot the hell is this actuary

 

[turtle_2468]

sigh... mouse, you know that
1) this is probably an assignment q which you should do yourself
2) If it isn't, try to do it first, and don't just copy and paste/type it in and expect an answer
3) you'll be screwed come exam time if you don't understand it...
Anyway, just trying to help in the long term...

 

[turtle_2468]

And please post future ones in the extracurricular part of the forum. This clearly doesn't belong here

 

[mouse]

turtle, do you understand the problem because i don't.

 

[turtle_2468]

yes. it doesn't have much to do with maths though.

 

[Affinity]

It isn't that difficult... I think it's asking you how a unit difference in polution (index of) will affect the wage level.

Looks like economics

 

[KeypadSDM]

Originally posted by Affinity
It isn't that difficult... I think it's asking you how a unit difference in polution (index of) will affect the wage level.

Looks like economics

*Shudders*

 

[Grey Council]

Originally posted by mouse
turtle, do you understand the problem because i don't.

You should see your lecturer then. lol, if you don't understand it at all, then you need help, solving this question won't help you.
I think

 

[mouse]

that's a good idea but my ego won't let me.

 

[CM_Tutor]

The regression coefficient (+3.6) associated with the explanatory variable X3 can be interpreted as follows:

All else equal, if crime rate index of a city A is 1 unit more than the same index of city B, then the annual wage rate of city A is $3600 more than in city B. That is a person who has to work in city A with a higher crime rate compared to city B must be compensated through his/her wage by an additional amount of $3600.

would be the answer if they had asked about the variable X3. You really should be able out from this how to interpret the variable X4.

Also, if you can't follow Grey Council's suggestion and ask a lecturer, how about a tutor? or a colleague in your course? or a student a year ahead of you? surely there is someone who could offer you some help.