Incomes of Physicians an Economist Is Analyzing the Incomes of Physicians (General

question 84

Essay

Incomes of Physicians
An economist is analyzing the incomes of physicians (general practitioners,surgeons,and psychiatrists).He realizes that an important factor is the number of years of experience.However,he wants to know if there are differences among the three professional groups.He takes a random sample of 125 physicians and estimates the multiple regression model y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε,where y = annual income (in $1,000),x₁ = years of experience,x₂ = 1 if physician and 0 if not,and x₃ = 1 if surgeons and 0 if not.The computer output is shown below. THE REGRESSION EQUATION IS y = 71.65 + 2.07x₁ + 10.16x₂− 7.44x₃ S = 42.6 R−Sq = 30.9% ANALYSIS OF VARIANCE ​ ​
-{Incomes of Physicians Narrative} Do these results allow us to conclude at the 1% significance level that the model is useful in predicting the income of physicians?

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Definitions:

Colonial Customs

Practices, behaviors, and traditions that were established and followed during the period of colonial rule in various countries.

Sugar Act

The Sugar Act of 1764 was a law enacted by the British Parliament raising duties on foreign refined sugar imported by the colonies, part of the events leading to the American Revolution.

Importation of Rum

The historical trade of rum, a distilled alcoholic beverage made from sugarcane byproducts, which was part of the triangular trade involving slaves, cash crops, and manufactured goods between the Americas, Africa, and Europe.

Smuggling

The illegal transport of objects, substances, information, or people, such as out of a house or buildings, into a prison, or across an international border, in violation of applicable laws or other regulations.