Islamia College University Peshawar

Department of Management Sciences

Program: BBA (Hons)

Course Title: QTM

Submitted By:
Name: Talha Ali
Roll no: 191584
Semester: 7th
Section: (B)
Submitted To:
Dr Mustafa Afif

1|P age
============================================================
Dependent Variable: WAGE
Method: Least Squares
Date: 01/25/23 Time: 15:05
Sample: 1 935
Included observations: 935
============================================================
Variable CoefficientStd. Errort-Statistic Prob.
============================================================
C 116.9916 85.64153 1.366061 0.1722
IQ 8.303064 0.836395 9.927203 0.0000
============================================================
R-squared 0.095535 Mean dependent var 957.9455
Adjusted R-squared 0.094566 S.D. dependent var 404.3608
S.E. of regression 384.7667 Akaike info criteri14.74529
Sum squared resid 1.38E+08 Schwarz criterion 14.75564
Log likelihood -6891.422 Hannan-Quinn criter14.74924
F-statistic 98.54936 Durbin-Watson stat 0.188070
Prob(F-statistic) 0.000000
============================================================

Interpretation:

The results of the least squares analysis indicate that C is not significant but IQ is significant
predictors of wage.IQ (beta) is statistically significant, with a t-statistic of 9.93 and a probability of
0.0000. it shows that any change in IQ will cause 8.30 times change in wages.

2|P age
============================================================
Dependent Variable: WAGE
Method: Least Squares
Date: 01/25/23 Time: 15:12
Sample: 1 935
Included observations: 935
============================================================
Variable CoefficientStd. Errort-Statistic Prob.
============================================================
C 224.8438 66.64243 3.373884 0.0008
IQ 5.076630 0.662354 7.664527 0.0000
MALE 498.0493 20.07684 24.80715 0.0000
============================================================
R-squared 0.455239 Mean dependent var 957.9455
Adjusted R-squared 0.454070 S.D. dependent var 404.3608
S.E. of regression 298.7705 Akaike info criteri14.24043
Sum squared resid 83193885 Schwarz criterion 14.25596
Log likelihood -6654.402 Hannan-Quinn criter14.24635
F-statistic 389.4203 Durbin-Watson stat 0.445380
Prob(F-statistic) 0.000000
============================================================

Interpretation:

The results of the least squares regression analysis show that when all other variables are held
constant, there is a positive relationship between the wage and IQ, It also show that when a person
has zero IQ and he is not male his wages will be 224.84 and when a person is male and his IQ is zero
his wages will be 722.88. and there is one unit increase in his IQ his wages will 5.07 times increases.
When a person is male and there is one unit inc

3|P age
============================================================
Dependent Variable: WAGE
Method: Least Squares
Date: 01/25/23 Time: 15:14
Sample: 1 935
Included observations: 935
============================================================
Variable CoefficientStd. Errort-Statistic Prob.
============================================================
C 412.8602 67.36367 6.128825 0.0000
IQ 3.184180 0.679283 4.687559 0.0000
MALE*IQ 4.840134 0.193746 24.98181 0.0000
============================================================
R-squared 0.458283 Mean dependent var 957.9455
Adjusted R-squared 0.457120 S.D. dependent var 404.3608
S.E. of regression 297.9346 Akaike info criteri14.23483
Sum squared resid 82728978 Schwarz criterion 14.25036
Log likelihood -6651.782 Hannan-Quinn criter14.24075
F-statistic 394.2274 Durbin-Watson stat 0.455835
Prob(F-statistic) 0.000000
============================================================

Interpretation:
The results of the least squares regression analysis show that when all other variables are held
constant, there is a positive relationship between the wage and IQ, It also show that when a person
has zero IQ and he is not male his wages will be 224.84 and when a person is not male and there is
one unit increase in his IQ his wages will 3.18 times increases. When a person is male and there is
one unit increase in IQ his wages will be 8.02 time increases.

4|P age
 Dependent Variable: Wage
Method: Least Squares
Date: 01/25/23 Time: 15:19
Sample: 1 935
Included observations: 935

Variable Coefficient Std. Error t-Statistic Prob.

C 162.1729 96.24558 1.684990 0.0923

IQ 2.808407 0.799006 3.514876 0.0005
AGE2 -13.26382 29.20247 -0.454202 0.6498
AGE3 39.85750 33.14489 1.202523 0.2295
BLACK -61.73537 31.39585 -1.966355 0.0496
EDUC2 6.414293 35.22084 0.182116 0.8555
EDUC3 87.94072 41.48686 2.119725 0.0343
EDUC4 159.8557 44.26520 3.611318 0.0003
EXPER 6.621100 2.819554 2.348280 0.0191
MALE 451.6437 20.08503 22.48658 0.0000
MARRIED 135.4945 30.74829 4.406572 0.0000
SOUTH -34.31654 20.81260 -1.648835 0.0995
URBAN 87.40949 21.48751 4.067920 0.0001

R-squared 0.501729 Mean dependent var 957.9455

Adjusted R-squared 0.495244 S.D. dependent var 404.3608
S.E. of regression 287.2831 Akaike info criterion 14.17262
Sum squared resid 76094097 Schwarz criterion 14.23992
Log likelihood -6612.700 Hannan-Quinn criter. 14.19828
F-statistic 77.36644 Durbin-Watson stat 0.544970
Prob(F-statistic) 0.000000

Interpretation:
The results of the least squares regression show that constant is insignificant so we cannot interpret
dummies effect on intercept. It also shows that when there is one unit change in IQ then there will 2.80
time change occur in wages.

5|P age