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.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 1E
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