Ve estimate a simple regression explaining monthly salary (salary) in terms of IQ score Q), using data from a random sample of 935 individuals. We obtain the following stimated regression line: alary = 117 + 8.30 × IQ What is the correct interpretation of the estimated slope coefficient? Individuals with IQ scores of 100 have, on average, monthly wages of $830. An additional one point increase in IQ score is associated, on average, with an increase in monthly salary of $8.30. O An additional one point increase in IQ score is associated, on average, with a decrease in monthly salary of $8.30. Each additional one point increase in IQ score will cause an increase in an individual's monthly salary by $8.30.

Ve estimate a simple regression explaining monthly salary (salary) in terms of IQ score Q), using data from a random sample of 935 individuals. We obtain the following stimated regression line: alary = 117 + 8.30 × IQ What is the correct interpretation of the estimated slope coefficient? Individuals with IQ scores of 100 have, on average, monthly wages of $830. An additional one point increase in IQ score is associated, on average, with an increase in monthly salary of $8.30. O An additional one point increase in IQ score is associated, on average, with a decrease in monthly salary of $8.30. Each additional one point increase in IQ score will cause an increase in an individual's monthly salary by $8.30.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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