Detailed interviews were conducted with over 1,000 street vendors in the city of Puebla, Mexico, in order
Question:
Detailed interviews were conducted with over 1,000 street vendors in the city of Puebla, Mexico, in order to study the factors influencing vendors' incomes. Vendors were defined as individuals working in the street, and included vendors with carts and stands on wheels and excluded beggars, drug dealers, and prostitutes. The researchers collected data on gender, age, hours worked per day, annual earnings, and education level.
a) Write a first-order model for mean annual earnings, E(y), as a function of age (xl) and hours worked (x2).
b) The model was fit to the data using SAS. Find the least squares prediction equation on the printout shown below.
c) Interpret the estimated ß coefficients in your model.
d) Conducta test of the global utility of the model (at alpha = 0.01). Interpret the result.
e) Find and inkerpret the value of R 2 a
f) Find and interprets, the estimated standard deviation of the error term.
g) Is age (x1) a statistically useful predictor of annual earnings? Test using a = 0.01
h) Find a 95% confidence interval for ß 2 . Interpret the interval in the words of the problem.
Expert Answer:
Annual Earnings Y Age X1 Hours Worked X2 1 2841 29 12 2 1876 21 8 3 2934 62 10 4 1552 18 10 5 3065 4... View the full answer
