Suppose We Estimate a Model in Which Salary in Thousands

question 3

Multiple Choice

Suppose we estimate a model in which salary in thousands of Euros is the dependent variable and years of education is the independent variable. We get a result that says Income-hat = 20 + 2 Years Education. Which of the following is correct:

• A) Two years of education increases income by one.
• B) An extra year of education is expected to increase income by 2.
• C) An individual with 10 years of education is expected to have an income of 20.
• D) The expected income for someone with 0 years of education is 2.

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Definitions:

Self-Regulating

The ability of an individual to manage and adjust their behavior, emotions, or thoughts towards achieving personal goals.

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Reproductive Advantage

A genetic or behavioral characteristic that increases an organism's likelihood of successful reproduction and passing genes to subsequent generations.

Natural Selection

The process through which traits that enhance survival and reproduction become more common in successive generations of a population.