Q-2) Use the data to estimate a simple regression explaining weekly salary (wage) in terms ofIQ score (IQ) (6 points)1. Find the average salary and average IQ in the sample. What is the sample standard deviation of 1Q? (1Q scores are standardized so that the average in the population is 100 with a standard deviation equal to 15) (2 points)2. Estimate a simple regression model where a one point increase in 1Q changes wage by a constant dollar amount. Use this model to find the predicted increase in wage for an increase in IQ of 15 points. Does1Q explain most of the variation in wage? (2 points)3. Now, estimate a model where each one-point increase in IQ has the same percentage effect on wage. If IQ increases by 15 points, what is the approximate percentage increase in predicted wage? (2 points)

SUMMARY OUTPUT Regression Statistics Multiple R 0.807949866 R Square 0.09483312 Adjusted R Square 0.09346373 Standard Error 387.0485467 Observations 663 ANOVA SS MS F gnificance F Regression 10374417.62 10374418 69.25208 4.97E-16 Residual 661 99022147.72 149806.6 Total 662 109396565.3 Coefficients Standard Error t Stat P-value Lower 95%Upper 95%ower 95.09pper 95.0% Intercept 114.9209336 106.0427789 1.083722 0.278883 -93.3004 323.1422 -93.3004 323.1422 8.524047701 1.024305369 8.321784 4.97E-16 6.512763 10.53533 6.512763 10.53533