A social scientist would like to analyze the relationship between educational at

Question

A social scientist would like to analyze the relationship between educational attainment and salary. He collects the following sample data, where Education refers to years of higher education and Salary is the individual's annual salary (in $1,000s): Education Sala 4 6 4 40 53 80 42 70 50 110 38 a. Find the sample regression equation for the model: Salary - | Education + . (Round intermediate calculations to at least 4 decimal places. Enter your answers in thousands rounded to 2 decimal places.) Salary= 44.01 5.38 Education b. Interpret the coefficient for Education OAs Education increases by 1 unit, an individual's annual salary is predicted to decrease by $9,380 As Education increases by 1 unit, an individual's annual salary is predicted to increase by $9,380 As Education increases by 1 unit, an individual's annual salary is predicted to decrease by $8,590 As Education increases by 1 unit, an individual's annual salary is predicted to increase by $8,590 c. What is the predicted salary for an individual who completed 7 years of higher education? (Round intermediate coefficient values to 2 decimal places and final answer, in dollars, to the nearest whole number.) Salary 81768 3

Explanation / Answer

a) The regression equation is

y=a+bx

fromExcel

The fitted model is

y=22.85+9.38(Education)

b)slope is 9.380

if education increases by 1 unit, an individuals annual salary is predicted to increase 9380

c) when x =7

y=22.85+9.38*(7)

y=88510

SUMMARY OUTPUT Regression Statistics Multiple R 0.921157 R Square 0.848531 Adjusted R Square 0.823286 Standard Error 10.48634 Observations 8 ANOVA df SS MS F Significance F Regression 1 3696.095 3696.095 33.61208 0.001154 Residual 6 659.7798 109.9633 Total 7 4355.875 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 22.85119 7.458967 3.063586 0.022123 4.599755 41.10263 4.599755 41.10263 education 9.380952 1.618077 5.797593 0.001154 5.42166 13.34024 5.42166 13.34024

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.