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
| Salary | Education |
| 38 | 5 |
| 70 | 5 |
| 96 | 8 |
| 55 | 3 |
| 80 | 9 |
| 78 | 8 |
| 108 | 9 |
| 49 | 0 |
| 31 | 6 |
| 37 | 6 |
| 96 | 5 |
| 40 | 1 |
| 69 | 7 |
| 70 | 7 |
| 166 | 5 |
| 63 | 0 |
| 83 | 1 |
| 62 | 3 |
| 131 | 5 |
| 28 | 0 |
a. Find the sample regression equation for the model: Salary =β0 + β1Education + ε. (Round answers to 2 decimal places.) Salaryˆ=+ Education b. Interpret the coefficient for Education. AsEducation increases by 1 unit, an individual’s annual salary ispredicted to decrease by $4,070. As Education increases by 1 unit,an individual’s annual salary is predicted to increase by $8,590.As Education increases by 1 unit, an individual’s annual salary ispredicted to increase by $4,070. As Education increases by 1 unit,an individual’s annual salary is predicted to decrease by $8,590.c. What is the predicted salary for an individual who completed 6years of higher education? (Round coefficient estimates to at least4 decimal places and final answer to the nearest whole number.)Salaryˆ $
