Assuming That You Are Trying to Determine the True Effect

question 17

Multiple Choice

Assuming that you are trying to determine the true effect of how years of education affect career earnings (Earnings_i = β₀ + β₁Education_i + U_i) , and that this effect is positive . What would be the likely induced correlation between Education and U_i of receiving a sample that only had individuals that made over $85,000?

• A) Negative
• B) Positive
• C) There is not enough information.
• D) None of the answers is correct.

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Definitions:

Socially Disapproved

Actions or behaviors that are generally condemned or regarded negatively by society.

Behaviors

The way a person or group behaves or responds when faced with outside or inside forces.

Socialization

The process by which individuals learn and internalize the values, beliefs, and norms of their society, becoming functioning members of that society.

Human Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.