a) Give a practical interpretation of the y-intercept of the regression line. b) What is the best-predicted value for the median hourly wage gain for the fifteenth year of schooling? c) The actual wage gain for the fifteenth year of schooling was 14%. How close was the predicted wage gain present to the actual value, i.e. what is the residual?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
a) Give a practical interpretation of the y-intercept of the regression line.
b) What is the best-predicted value for the median hourly wage gain for the fifteenth year of schooling?
c) The actual wage gain for the fifteenth year of schooling was 14%. How close was the predicted wage gain present to the actual value, i.e. what is the residual?
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