SUMMARY OUTPUT

Regression Statistics
Multiple R
0.9089800301
R Square
0.8262446952
Adjusted R Square
0.8227695891
Standard Error
10173.84509
Observations
52
ANOVA
df
Regression
Residual
Total

Intercept
Age

SS
MS
1 2.5E+010 2.5E+010
50 5.2E+009 1.0E+008
51 3.0E+010

F
Significance F
237.761 1.23E-020

Coefficients Standard Error t Stat

P-value Lower 95%
-28627.420073 5148.613 -5.56022 1.05E-006 -38968.71
1979.1674197 128.3548 15.4195 1.23E-020 1721.359

nificance F

Upper 95%
Lower 95.0%
Upper 95.0%
-18286.13 -38968.71 -18286.13
2236.976 1721.359 2236.976

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.8179845482
R Square
0.669098721
Adjusted R Square
0.6624806954
Standard Error
14039.94179
Observations
52
ANOVA
df
Regression
Residual
Total

Intercept
Yrs Experience

SS
MS
F
Significance F
1 2.0E+010 2.0E+010 101.1025 1.34E-013
50 9.9E+009 2.0E+008
51 3.0E+010

CoefficientsStandard Error t Stat

P-value Lower 95%Upper 95%
21457.775291 3257.92 6.586342 2.66E-008 14914.05 28001.5
3048.6153681 303.1948 10.05497 1.34E-013 2439.631
3657.6

Lower 95.0%
Upper 95.0%
14914.05 28001.5
2439.631
3657.6

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.6498216563
R Square
0.4222681851
Adjusted R Square
0.4107135488
Standard Error
18551.508362
Observations
52
ANOVA
df
Regression
Residual
Total

Intercept
Education

SS
MS
F
Significance F
1 1.3E+010 1.3E+010 36.54535 1.86E-007
50 1.7E+010 3.4E+008
51 3.0E+010

CoefficientsStandard Error t Stat

P-value Lower 95%Upper 95%
11656.266696 6497.104 1.794071 0.078849 -1393.551 24706.08
8448.0096028 1397.457 6.045275 1.86E-007 5641.135 11254.88

Lower 95.0%
Upper 95.0%
-1393.551 24706.08
5641.135 11254.88

Salary&Age
Se
R2
Adjusted R
Se ratio

Salary&Yrs Experience

Salary&Education

10173.845

14039.942

18551.508

0.826

0.669

0.422

0.823

0.662

0.41

0.2131853614

0.2941965509

0.3887330637

Look at the data above, we could see the age model is the best use for predicting salary because:
R2 is 82.6% of the variation in predicting salary can be explained by age. The 0.826 show that this is
Se = 0.21

Since the standard error 0.21 greater than 0.20 , this model is just good enough promis

ing salary because:

0.826 show that this is a good model for predicting salary.

ust good enough promising for predicting the salary because the average error is not too big or not too small. It

o big or not too small. It is above the rule of thumb 0.01. But if compare the age model to predict to the salara

el to predict to the salarary is still better than the other two model (Salary& Yrs Experience and Salary & Educa

ence and Salary & Education).

Annual Salary
$120,000

$100,000

$80,000

Salary (in thousands dollar)

$60,000

$40,000

$20,000

$0
10

20

30

40

Age (years old)

50

60

70

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.9468058357
R Square
0.8964412904
Adjusted R Square
0.8899688711
Standard Error
8016.296698
Observations
52
ANOVA
df
Regression
Residual
Total

Intercept
Age
Yrs Experience
Education

SS
MS
F
Significance F
3 26700784711.2 8.9E+009 138.5017 1.23E-023
48 3084528612.028 64261013
51 29785313323.23

Coefficients
-22316.40084
1151.9182631
976.35989786
4026.4845661

Standard Error
t Stat
P-value Lower 95%
5617.808164013 -3.972439 0.000238 -33611.76
233.5442171179 4.932335 1.01E-005 682.3461
366.2218510359 2.666034 0.010427 240.0215
721.0831073075 5.58394 1.08E-006 2576.65

c/
Salary^ = -22316.401 + 1151.918*Age + 976.360*yrs experience + 4026.485*education
Salary^ =
$ 46,995.82

d/
Holding age, years of experience and years of higher education constant, on avarage, we expected th

e/
The slope coefficent of 1151.918 suggests that for every additional age, the predicted salary increase
The slope coefficent of 976.36 suggests that for every additional years of experience, the predicted sa
The slope coefficent of 4026.48 suggests that for every additional years of higher education, the pred

f/
One additional independent variables that tim might consider for this model is distance. At a differen

nificance F

Upper 95%
Lower 95.0%
Upper 95.0%
-11021 -33611.76
-11021
1621.49 682.3461 1621.49
1712.698 240.0215 1712.698
5476.319 2576.65 5476.319

education

arage, we expected the salary to be ($22,316.400)

dicted salary increases by $1,151.92 , holding years of experience and years of higher education constant.
ence, the predicted salary increases by $976.36 , holding age and years of higher education constant.
r education, the predicted salary increases by $4,026.48 , holding age and years of experience constant.

istance. At a difference distance, the amount of salary could change in the wages.

education constant.
cation constant.
perience constant.

Person
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44

Age
39
44
24
25
56
41
33
37
51
23
31
27
47
35
29
46
50
30
34
42
51
63
28
32
55
45
34
33
23
40
48
27
36
58
31
21
47
35
52
29
42
60
50
33

Yrs Experience
12
8
2
1
25
10
2
6
16
1
4
8
9
5
4
15
17
6
1
8
15
20
5
1
16
2
12
7
1
13
15
6
5
22
1
1
16
7
14
3
7
21
13
2

Education
4
6
4
4
8
4
6
4
6
4
6
0
4
6
0
6
4
4
4
4
8
4
4
4
6
4
2
4
4
6
4
0
6
4
6
2
4
4
8
2
4
4
4
6

Annual Salary
$38,450
$50,912
$29,356
$27,750
$109,285
$48,442
$40,207
$42,331
$87,489
$26,118
$41,956
$17,439
$49,638
$43,184
$14,371
$54,613
$76,927
$38,556
$37,183
$50,712
$90,473
$93,588
$36,901
$33,100
$89,867
$51,259
$19,106
$39,224
$28,743
$54,965
$53,388
$18,014
$39,205
$88,763
$35,829
$17,784
$54,199
$36,932
$93,278
$22,100
$49,987
$85,471
$51,194
$36,109

45
46
47
48
49
50
51
52
Average

26
38
44
25
37
53
46
20

5
6
12
3
5
13
18
1

2
6
4
4
4
6
4
0

$21,750
$39,455
$49,861
$30,327
$31,008
$90,874
$57,966
$15,945
$47,723