Question 19 A study was conducted to determine if a person\'s agreeability (whet

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Question 19 A study was conducted to determine if a person's agreeability (whether they are generally an agreeable person or not) affects their income level It also looked at the person's gender to see if it was a factor as well. The variables are shown below: Income: y annual income in dollars Agree: -agreeability level with higher scores indicating a person is more aggregable and lower scores indicating less agreeable Gender: x2-1 if male, O if female Use the following information to answer the multiple regression questions Printout C: Least Squares Linear Regression of Income Predictor Variables Coefficient Std ErrorTP Agree Gender x1x2 0977.18788.81 4.6 00000 5479.36 2643.95 1.07 02409 54225.1 12988.7 417 00001 8708.14 393483 -2.21 0.0293 R2 0.7626 Mean Square Error (MSE 6.047E+07 Adjusted R 0.7552 Standard Deviation 7700.00 Source Regression 31.B65E+10 .217E+09 10250 0.0000 Residual Total DF SS MS 96 5.005E+09 6.047E+07 99 2.446E+10 Which of the fallowing prablems would cause us to transform the income variable and begin our madel building again? O A plot of the stem-and-leaf display of the residuas indicates extreme skcwness O A plot of the residuals vs. y-hat values indicates a cone patterm. O A plot of the residuals vs. agrccability levels indicates a quadratic trend. O We discover a high level of multicolincarity is present between agreeability level and gender

Explanation / Answer

The problems that would cause us to transform the income variable and begin our model building again:

i) A plot of the stem and leaf display of the residuals indicates extreme skewness.

iv) We discover a high level of multicollinearity is present between agreeability level and gender.

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