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 3 4 6 2 5 4 8 0

Salary 40 53 80 42 70 50 110 38 Data is in the spreadsheet.

Use the Regression tool in Data Analysis to find the regression output. Are Education and salary related at the .01 level of significance?

a. No. We reject H0 because the pvalue is less than the level of significance, so the two variables are not related.

b. Yes. We do not reject H0 because the pvalue is less than the level of significance, so the two variables are related.

c. No. We do not reject H0 because the pvalue is less than the level of significance, so the two variables are not related.

d. Yes. We reject H0 because the pvalue is less than the level of significance, so the two variables are related.

Answer 1

EXCEL (Data Analysis) output: SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square 0.823286239 Standard Error Observations 0.921157458 0.848531062 10.48633843 ANOVA Significance F df SS MS F Regression Residual Total 1 3696.095238 3696.095 33.61208 0.001153934 6 659.7797619 109.9633 4355.875 7 Coefficients Standard Error Upper 95% P-value Lower 95% t Stat Intercept 22.85119048 7.458967103 3.063586 0.022123 4.59975551 41.10262544 Education 9.380952381 1.618077148 5.797593 0.001154 5.421660238 13.34024452 d. Yes. We reject Ho because the p-value is less than the level of significance, so the two variables are related 0