A social scientist would like to analyze the relationshipbetween educational attainment (in years of higher education) andannual salary (in $1,000s). He collects data on 20 individuals. Aportion of the data is as follows:
Salary | Education |
35 | 4 |
71 | 1 |
84 | 3 |
52 | 3 |
70 | 7 |
80 | 5 |
107 | 9 |
55 | 0 |
23 | 4 |
33 | 6 |
102 | 6 |
40 | 4 |
67 | 2 |
68 | 5 |
163 | 9 |
55 | 0 |
83 | 8 |
56 | 3 |
125 | 11 |
31 | 0 |
a. Find the sample regression equation for themodel: Salary = β0 +β1Education + ε. (Roundanswers to 3 decimal places.)
Salary= (blank) +(blank)Education
b. Interpret the coefficient for Education.
a. As Education increases by 1 unit, an individual’s annualsalary is predicted to decrease by $7,161.
b. As Education increases by 1 unit, an individual’s annualsalary is predicted to decrease by $8,590.
c. As Education increases by 1 unit, an individual’s annualsalary is predicted to increase by $8,590.
d. As Education increases by 1 unit, an individual’s annualsalary is predicted to increase by $7,161.
c. What is the predicted salary for an individual whocompleted 6 years of higher education? (Round answer to the nearestwhole number.)
