A Professor of Economics Wants to Study the Relationship Between

question 193

Essay

A professor of economics wants to study the relationship between income y (in $1000s) and education x (in years). A random sample of eight individuals is taken and the results are shown below. $$\begin{array} { | l | c | c | c | c | c | c | c | c | } \hline \text { Education } & 16 & 11 & 15 & 8 & 12 & 10 & 13 & 14 \\\hline \text { Income } & 58 & 40 & 55 & 35 & 43 & 41 & 52 & 49 \\\hline\end{array}$$ Assume that the conditions for the tests conducted in the previous two questions are not met. Do the data allow us to infer at the 5% significance level that years of education and income are linearly related?

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Definitions:

Behavioural Tolerance

The phenomenon where increased exposure to a certain behavior reduces the response to that behavior over time, often seen with drug and alcohol use.

Consistent Notion

A concept or idea that remains uniform or unchanged across different contexts or over time.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or condition strengthens a behavior or increases its likelihood of being repeated.