Multiple Regression Analysis Was Used to Study How an Individual's $\alpha$

question 63

Essay

Multiple regression analysis was used to study how an individual's income (Y in thousands of dollars)is influenced by age (X₁ in years),level of education (X₂ ranging from 1 to 5),and the person's gender (X₃ where 0 =female and 1=male).The following is a partial result of a computer program that was used on a sample of 20 individuals.

a.Compute the coefficient of determination.
b.Perform a t test and determine whether or not the coefficient of the variable "level of education" (i.e. ,X₂)is significantly different from zero.Let $\alpha$ = 0.05.
c.At $\alpha$ = 0.05,perform an F test and determine whether or not the regression model is significant.
d.As you note the coefficient of X₃ is -0.510.Fully interpret the meaning of this coefficient.

Understand the significance of credibility in monetary policy.

Illustrate the relationship between the Phillips curve, inflation rate, and unemployment rate, including the concept of the natural rate of unemployment.

Elucidate the implications of the Phillips curve for fiscal and monetary policy, including the Friedman and Phelps critique.

Understand the relationship between inflation, unemployment, and the short-run Phillips curve.