Econometric experts only,

An analyst wishes to study how expenditure on travel by an individual varies with their gender and employment status. They collect cross-sectional data for these variables and the data is as follows:

Travel expenditure in dollars	Gender	Employment Status
40	Male	Employed
31	Female	Unemployed
18	Male	Unemployed
19	Male	Unemployed
47	Male	Employed
27	Female	Unemployed
26	Female	Unemployed
17	Male	Unemployed
43	Male	Employed
49	Male	Employed
15	Male	Unemployed
25	Female	Unemployed
29	Female	Unemployed
20	Male	Unemployed
41	male	Employed

Required:

(i)                 Taking gender as D1i = 1 if individual is female, but 0 otherwise; and employment status as D2i = 1 if employed, but 0 otherwise; regress travel expenditure on gender and employment status

(ii)               Interpret the results of the estimated regression model

(iii)             What expenditure value will a male unemployed person make?

(iv)             Calculate R2 and adjusted R2

(v)               Test for the overall significance of the model

(vi)             Derive the variance-covariance matrix, and test for the statistical significance for each parameter in the model