Does it pay to stay in school? The report Trends in Higher Education (The College Board, 2010) looked at the median hourly wage gain per additional year of schooling in 2007. The report states that workers with a high school diploma had a median hourly wage that was 10% higher than those who had only completed 11 years of school. Workers who had completed 1 year of college (13 years of education) had a median hourly wage that was 11% higher than workers who had completed only 12 years of school. The gain in median hourly wage for each additional year of school is shown in the table below. The entry for 15 years of schooling has been intentionally omitted from the table. Years of Schooling | 2007 Median Hourly Wage Gain for the Additional Year (percent) 12 10 13 11 14 12
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) Determine the
b) Find the equation of the regression line for the given data. (Round the slope and y-intercept 4 decimal places).
c) Give a practical interpretation of the slope of the regression line.
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps with 3 images
