The relationship between annual salary (in US dollars) and race was estimated as below in a linear format. (White employees were coded as 0 and Non-White employees were coded as 1.) Annual Salary = -17,472 * Non-White + 48,253 (The p-value for the coefficient of Non-White is 0.01.) How can the relationship between race and annual salary be interpreted? A.) White employees are expected to receive 17,472 dollars more than non-white employees. B.) White employees are expected to receive 17,472 dollars less than non-white employees. C.)There is no meaningful difference in annual salary between white and non-white employees from a statistical point of view. D.) White employees are expected to receive 48,253 dollars more than non-white employees.
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.
Question 8
The relationship between annual salary (in US dollars) and race was estimated as below in a linear format.
(White employees were coded as 0 and Non-White employees were coded as 1.)
Annual Salary = -17,472 * Non-White + 48,253
(The p-value for the coefficient of Non-White is 0.01.)
How can the relationship between race and annual salary be interpreted?
A.) White employees are expected to receive 17,472 dollars more than non-white employees.
B.) White employees are expected to receive 17,472 dollars less than non-white employees.
C.)There is no meaningful difference in annual salary between white and non-white employees from a statistical point of view.
D.) White employees are expected to receive 48,253 dollars more than non-white employees.
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