A study on 300 factory workers was carried out to determine the factors that affect the...

 

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A study on 300 factory workers was carried out to determine the factors that affect the workers' wage. The regression results are as follows: Wg = 50.00 + 40.00Ed + 30.00 Ep + 20.007w Where Wg Upah satu jam pekerja (RM) Worker wages per hour (RM) Ed = Tahap persekolahan (dalam tahun) Level of schooling (in years) Pengalaman kerja (dalam tahun) Working experience (in years) Ep Tw 1 jika di kawasan bandar; 0 jika di kawasan luar bandar I if urban area; 0 if rural area a. Why dummy variable is included in the above model b. Interpret the variable level of schooling c. Derive and state the regression equation for urban and rural area. (2 marks) (3 marks) (5 marks) A study on 300 factory workers was carried out to determine the factors that affect the workers' wage. The regression results are as follows: Wg = 50.00 + 40.00Ed + 30.00 Ep + 20.007w Where Wg Upah satu jam pekerja (RM) Worker wages per hour (RM) Ed = Tahap persekolahan (dalam tahun) Level of schooling (in years) Pengalaman kerja (dalam tahun) Working experience (in years) Ep Tw 1 jika di kawasan bandar; 0 jika di kawasan luar bandar I if urban area; 0 if rural area a. Why dummy variable is included in the above model b. Interpret the variable level of schooling c. Derive and state the regression equation for urban and rural area. (2 marks) (3 marks) (5 marks)

Answer rating: 100% (QA)

a The dummy variable Ep is included in the model to capture the effect of whether the factory workers location is in an urban area or a rural area on their wages By using a dummy variable we can quantify and account for any wage differences that may exist between workers in urban and rural areas The dummy variable takes a value of 1 if the worker is in an urban area and 0 if the worker is in a rural area Including this variable allows us to estimate and analyze the specific impact of location on wages holding other factors constant b The variable Level of schooling Ed in the regression equation represents the number of years of schooling that the factory worker ... View the full answer