Wage (Y) Education (X₁) Experience (X₂) Interaction (X₁ × X₂)
32000 10 3 30
35000 11 4 44
37000 12 5 60
39000 12 6 72
42000 13 7 91
45000 14 8 112
48000 15 9 135
50000 15 10 150
53000 16 11 176
55000 17 12 204
57000 17 13 221
60000 18 14 252
63000 19 15 285
65000 19 16 304
68000 20 17 340
70000 21 18 378
73000 22 19 418
75000 22 20 440
78000 23 21 483
80000 24 22 528
83000 25 23 575
86000 26 24 624
88000 27 25 675
90000 28 26 728
93000 29 27 783
95000 30 28 840
97000 30 29 870
100000 31 30 930
103000 32 31 992
105000 33 32 1056
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.99988999880002
R Square 0.99978000970031
Adjusted R Square 0.99975462620419
Standard Error 347.552883826138
Observations 30
ANOVA
df SS MS F
Regression 3 14273026048.4832 4.76E+09 39387.009773621
Residual 26 3140618.1834525 120793
Total 29 14276166666.6667
Coefficients Standard Error t Stat P-value
Intercept 19584.5497617756 1903.3328076303 10.28961 1.166069307E-10
Education (X₁) 540.922881403466 219.884164433208 2.460036 0.0208549207829
Experience (X₂) 2315.89507887955 127.621214478071 18.14663 2.769975105E-16
Interaction (X₁ × X₂) -6.2288017685696 1.78303444157629 -3.493372 0.001725009418
effect of experience on wages at different education
level
35
year of scooling and experience
30
25
20
15
10
5
0
20000 30000 40000 50000 60000 70000 80000 90000 100000 110000
wages
Education (X₁) Experience (X₂)
Significance F
1.1826161781857E-47
Lower 95% Upper 95% Lower 95.0%
Upper 95.0%
15672.1931441567 23496.9063793945 15672.19 23496.91
88.9445083196164 992.901254487315 88.94451 992.9013
2053.56591552452 2578.22424223458 2053.566 2578.224
-9.89388155334381 -2.56372198379536 -9.893882 -2.563722
ucation
00 100000 110000