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2. Suppose you are interested in the relationship between weekly wage earnings in dol lars) and age (in years). You run a linear regression model where age is your dependent variable and earn is your independent variable. Answer the following questions about your regression results. earn = 239.16 5.20 × age (20.24) (0.57) Ip = 0.05, SER 287.21 (a) Interpret the coefficient for age. (b) Is the effect of age on earnings economically significant here? (Hint: think about how much does a person earn more in a year as age increases by 1 year) (c) The average age in this sample is 37.5 years. What is the average yearly earning in the sample? (d) Interpret R2 and state the unit for SER. (e) Is age statistically significant? Conclude by computing t statistic and p-value. (f) You hypothesize that age should be positively affecting earnings. Conduct this one sided test and conclude
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