11. (Hypothetical.) A congressional report is discussing the relationship betwee

Question

11. (Hypothetical.) A congressional report is discussing the relationship between income of parents and educational attainment of their daughters. Data are from a sample of families with daughters age 18-24. Average parental income is $79,300; average educational attainment of the daughters is 12.7 years of schooling completed; the correlation is 0.37. The regression line for predicting daughter's education from parental income is reported as y = mx + b, with x = parental income (dollars), y = predicted education (years), m = 0.00000925 years per dollar, and b = 10.3 years: predicted education 0.00000925 × income + 10.3 Is anything wrong? Or do you need more information to decide? Explain briefly

Explanation / Answer

Here,

Predicted education = 0.00000925 * Income + 10.3

Here the average parent income = $ 79300

Predicted education = 0.00000925 * Income + 10.3

=  0.00000925 * 79300 + 10.3

Predicted education = 11.034 years

The real education years = 12.7 years

Yes, there is something wrong here as the regression line must pass through the average income and average education years values. I think, there is one more varaible we require.

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