The Following Sample Data Contains the Number of Years of College

question 63

Essay

The following sample data contains the number of years of college and the current annual salary for a random sample of heavy equipment salespeople.
a. Which variable is the dependent variable? Which is the independent variable?
b. Determine the least squares estimated regression line.c. Predict the annual income of a salesperson with one year of college.d. Test if the relationship between years of college and income is statistically significant at the .05 level of significance.e. Calculate the coefficient of determination.
f. Calculate the sample correlation coefficient between income and years of college. Interpret the value you obtain.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it at various prices.

Perfectly Elastic

A state of demand or supply in which the quantity demanded or supplied changes infinitely with any change in price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

Efficient Output

The maximization of output using the least amount of inputs or resources.