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# Salaries of Public School Teachers: Regression Table Results

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)?

#### Solution Preview

A. Since the t-statistic of 3,12 is vert large, it will fall in the rejection region. Therefore, there is sufficient evidence to conclude at ...

#### Solution Summary

This response looks at the results of a regression table and calculates the percentage of variation in salary and determines the estimate points for certain teachers.

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