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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.