Question

Exercise 14-27 Algo A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion of the data is as follows ts Salary 37 Education 6 69 eBook 29 Print I Click here for the Excel Data File References a. Find the sample regression equation for the model: Salary Ao AEducation . (Round answers to 2 decimal places.) Salary Education b. Interpret the coefficient for Education. O As Education increases by 1 unit, an individual's annual salary is predicted to increase by $5,320. O As Education increases by 1 unit, an individual's annual salary is predicted to deecrease by $8,590 O As Education increases by 1 unit, an individual's annual salary is predicted to increase by $8,590 O As Education increases by 1 unit, an individual's annual salary is predicted to decrease by $5,320 c. What is the predicted salary for an individual who completed 8 yars of higher 4 decimel places and final onswer to the nearest whole number.) education? (Round coefficlent estimates to at least Salary PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit F9 X A E G H 1 Salary Education 2 37 6 69 7 93 1 5 56 1 75 3 7 76 9 8 109 9 50 10 26 11 40 4 12 97 1 13 36 3 14 70 15 65 6 16 161 17 59 18 82 4 19 57 1 20 129 10 21 29 0 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 AL

Answer 1

Regression Analysis: salary versus education Analysis of Variance Source DF Adj SS Adj MS F-Value P-Value Regression 1 6852 6851.6 7.93 0.011 education 1 6852 6851.6 7.93 0.011 Error 18 15556 864.2 Lack-of-Fit 7 6342 906.1 1.08 0.435 Pure Error 11 9213 837.6 Total 19 22407 Model Summary R-sq R-sq (adj) R-sq (pred) 26.72 29.3973 30.58 12.69% Coefficients Term VIF Coef SE Coef T-Value P-Value Constant 48.2 10.4 4.64 0.000 education 5.32 1.89 2.82 0.011 1.00 Regression Equation salary 48.2 + 5.32 education

a) Regression Equation
salary = 48.2 + 5.32 education

$\beta _{0}=48.2$

$\beta _{1}=5.32$

b)From the regression equation we can say that

As education increases by 1 unit an individuals salary increases by 5.320 unit.

c)The predicted salary of an individual who completed 8 years of education is

$48.2+(5.32*8)=90.76\$$