Discuss the following problems:
Q: The following regression results relate to a study of the salaries of public school teachers in Midwestern city.
Variable coefficient standard error t-ratio
Constant 20,720 6,820 3.04
EXP 805 258 3.12
R -squared = 0.684, n=105, standard error of estimate = 2000
EXP is the experience of teachers in years of full-time teaching
A. What is the t -ratio/3.12/ for EXP? Does it indicate that experience is a statistically significant determinant of salary if a 95%confidence level is desired?
B. What percentage of the variation in salary is explained by this model?
C. Determine the point estimate of salary for a teacher with 20 years of experience?
D. What is the approximate 95% confidence interval for point estimate from part (C)?