A Professor of Economics Wants to Study the Relationship Between

question 114

Essay

A professor of economics wants to study the relationship between income (y in $1000s) and education (x in years). A random sample eight individuals is taken and the results are shown below. Determine the standard error of estimate.
s_r = ______________
Describe what this statistic tells you about the regression line.
____________________________
Determine the coefficient of determination.
R² = ______________
Discuss what its value tells you about the two variables.
________________________________________________________
Calculate the Pearson correlation coefficient.
r = ______________
Why does it have the sign it has?
________________________________________________________
Conduct a test of the population slope to determine at the 5% significance level whether a linear relationship exists between years of education and income.
Test statistic:
t = ______________
Rejection Region:
Reject H₀ if | t | > ______________
Conclusion:
______________
A linear relationship ______________ between years of education and income.

Understand the difference between achievement and aptitude tests.

Recognize the importance of standardization, validity, and reliability in psychological testing.

Understand the concept of verbal and performance scores in the WAIS.

Understand the influence of socioeconomic status and personality factors on life success.

---

Definitions:

Assumption

A thing that is accepted as true or as certain to happen, without proof.

Justification

A reason or argument that explains why a particular action, belief, or statement is reasonable or necessary.

Premise

A prior assertion or claim from which another conclusion is drawn or follows logically.

Simp

Slang for someone who demonstrates excessive sympathy or attention towards another person, often without reciprocation.