Game Show Winnings & Education
an Ardent Fan of Television

question 66

Essay

Game Show Winnings & Education
An ardent fan of television game shows has observed that,in general,the more educated the contestant,the less money he or she wins.To test her belief she gathers data about the last eight winners of her favorite game show.She records their winnings in dollars and the number of years of education.The results are as follows.
$$\begin{array} { | c | c | c | } \hline \text { Contestant } & \text { Years of Education } & \text { Winnings } \\\hline 1 & 11 & 750 \\2 & 15 & 400 \\3 & 12 & 600 \\4 & 16 & 350 \\5 & 11 & 800 \\0 & 16 & 300 \\7 & 13 & 650 \\8 & 14 & 400 \\\hline\end{array}$$
-{Game Show Winnings & Education Narrative} Do the tests $\rho$ and $\beta$ ₁ in the previous two questions provide the same results? Explain.

---

Definitions:

Price Change

An adjustment in the cost of a good or service in the market, which can be an increase or decrease due to various factors.

Income

The remuneration accrued, notably in a recurrent manner, from labor or the investment of resources.

Substitution Effect

The economic principle that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Income

The monetary amount received by an individual or entity in exchange for labor, services, or investment.