e added to reduce the error variance

Mathematics For Machine Technology
8th Edition
ISBN:9781337798310
Author:Peterson, John.
Publisher:Peterson, John.
Chapter28: Degree Of Precision, Greatest Possible Error, Absolute Error, And Relative Error
Section: Chapter Questions
Problem 52A
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Discuss how regressors can be added to reduce the error variance
The relationship between wages and experience is modelled and the following
output was obtained
wage = 3.731 +0.298 exper- .0061 exper²
(0.35) (0.041)
(0.0009)
Where:
wage is the hourly wage and exper is the years of experience an individual has.
The numbers in brackets are the standard errors.
Transcribed Image Text:The relationship between wages and experience is modelled and the following output was obtained wage = 3.731 +0.298 exper- .0061 exper² (0.35) (0.041) (0.0009) Where: wage is the hourly wage and exper is the years of experience an individual has. The numbers in brackets are the standard errors.
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