Jessica wants to determine how hourly wage (in $) is affected by the following factors: Age...

  

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Jessica wants to determine how hourly wage (in $) is affected by the following factors: Age (in years) Race (0: Non-white, 1: White) College graduation (0: did not graduate college, 1: graduated college) Union status (0: not a labor union member, 1: labor union member) She runs a multivariate regression in STATA and obtains the following results. . reg wage age race collgrad union Source SS df MS Number of obs F(4, 1849) 1,854 85.23 Model Residual 4968.80507 26949.6369 4 1242.20127 1,849 14.5752498 Prob > F 0.0000 R-squared 0.1557 Adj R-squared 0.1538 Total 31918.442 1,853 17.225279 Root MSE 3.8178 wage Coefficient Std. err. t P>|t| [95% conf. interval] age race .0096984 .8601627 .0293158 .2018588 0.33 0.741 4.26 0.000 -.0477971 .067194 .4642675 1.256058 collgrad union _cons 3.296172 1.264483 5.421654 .2080631 15.84 0.000 2.888109 3.704235 .2082305 1.155113 6.07 0.000 4.69 0.000 .8560917 1.672875 3.15619 7.687117 (a) Interpret the coefficient on college graduation (in words). (b) Interpret the coefficient on union status (in words). (c) Interpret the coefficient on race (in words). (d) Calculate the predicted hourly wage for a White worker who is 40 years old, skipped college and is a labor union member. (e) Interpret the R squared value. Jessica wants to determine how hourly wage (in $) is affected by the following factors: Age (in years) Race (0: Non-white, 1: White) College graduation (0: did not graduate college, 1: graduated college) Union status (0: not a labor union member, 1: labor union member) She runs a multivariate regression in STATA and obtains the following results. . reg wage age race collgrad union Source SS df MS Number of obs F(4, 1849) 1,854 85.23 Model Residual 4968.80507 26949.6369 4 1242.20127 1,849 14.5752498 Prob > F 0.0000 R-squared 0.1557 Adj R-squared 0.1538 Total 31918.442 1,853 17.225279 Root MSE 3.8178 wage Coefficient Std. err. t P>|t| [95% conf. interval] age race .0096984 .8601627 .0293158 .2018588 0.33 0.741 4.26 0.000 -.0477971 .067194 .4642675 1.256058 collgrad union _cons 3.296172 1.264483 5.421654 .2080631 15.84 0.000 2.888109 3.704235 .2082305 1.155113 6.07 0.000 4.69 0.000 .8560917 1.672875 3.15619 7.687117 (a) Interpret the coefficient on college graduation (in words). (b) Interpret the coefficient on union status (in words). (c) Interpret the coefficient on race (in words). (d) Calculate the predicted hourly wage for a White worker who is 40 years old, skipped college and is a labor union member. (e) Interpret the R squared value.