Two independent Variables Statistics Show all workSuppose an economist specifi

Two independent Variables Statistics Show all workSuppose an economist specifies a human capital model in which earnings or income is the dependent variable and years of education and IQ are the independent variables. Income is represented by Y IQ by X1 and years of education by X2. The underlying theory behind the model is that IQ and education should both have an impact on the earnings of individuals. The data (hypothetical) available to test this theory are presented in this table.Income-IQ-Education TableIncome (Y) IQ (X1) Education (X2)$5000 80 96000 95 87000 100 108000 101 109000 103 1110000 115 1411000 105 1512000 116 1313000 120 1614000 110 17a) Estimate the regression equationb) Conduct the significance of the regression test (alpha = 5%)c) Calculate R^2d) Test if the IQ variable is a significant determinant of changes in income (alpha = 1%). Do the same for education (alpha = 5%)e) Find the point estimate of income when IQ = 120 and education = 16.

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