A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion of the data is as follows:   Salary Education   34     3     66     1     ⋮     ⋮     33     0            Click here for the Excel Data File     a. Find the sample regression equation for the model: Salary = β0 + β1Education + ε. (Round answers to 2 decimal places.)   Salaryˆ=Salary^=    +   Education b. Interpret the coefficient for Education.   multiple choice As Education increases by 1 year, an individual’s annual salary is predicted to increase by $4,690. As Education increases by 1 year, an individual’s annual salary is predicted to decrease by $4,690. As Education increases by 1 year, an individual’s annual salary is predicted to increase by $8,590. As Education increases by 1 year, an individual’s annual salary is predicted to decrease by $8,590.     c. What is the predicted salary for an individual who completed 7 years of higher education? (Round coefficient estimates to at least 4 decimal places and final answer to the nearest whole number.)   SalaryˆSalary^               $

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A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion of the data is as follows:

 

Salary Education
  34     3  
  66     1  
       
  33     0  
 

 

 

 

 Click here for the Excel Data File

 

 

a. Find the sample regression equation for the model: Salary = β0 + β1Education + ε(Round answers to 2 decimal places.)

 

Salaryˆ=Salary^=    +   Education


b. Interpret the coefficient for Education.

 

multiple choice

  • As Education increases by 1 year, an individual’s annual salary is predicted to increase by $4,690.
  • As Education increases by 1 year, an individual’s annual salary is predicted to decrease by $4,690.
  • As Education increases by 1 year, an individual’s annual salary is predicted to increase by $8,590.
  • As Education increases by 1 year, an individual’s annual salary is predicted to decrease by $8,590.

 

 

c. What is the predicted salary for an individual who completed 7 years of higher education? (Round coefficient estimates to at least 4 decimal places and final answer to the nearest whole number.)

 

SalaryˆSalary^               $ 

Salary
Education
34
3
66
1
89
4
56
71
7
80
2
111
7
51
23
7
36
2
100
35
1
71
68
163
56
86
58
4
128
33
Transcribed Image Text:Salary Education 34 3 66 1 89 4 56 71 7 80 2 111 7 51 23 7 36 2 100 35 1 71 68 163 56 86 58 4 128 33
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