We run a regression to test whether higher working experience leads to higher ho
ID: 2442299 • Letter: W
Question
We run a regression to test whether higher working experience leads to higher hourly wages, and include three explanatory variables age, education squared, and log of experience. We obtain the following fitted regression line.
How to interpret the coefficient of age?
percent
When age increases 1 unit, wage increases 0.56 unit
When age increases 1 unit, wage increases 0.56 percent
percent
A.percent
B.When age increases 1 unit, wage increases 0.56 unit
C.When age increases 1 unit, wage increases 0.56 percent
D.percent
Explanation / Answer
The following regression equation interprets the impact of the variables on wage , when age increases by one unit the wage increases by 0.56% . Part c .