Applicants for a Particular Job,which Involves Extensive Travel in Spanish-Speaking

question 12

Essay

Applicants for a particular job,which involves extensive travel in Spanish-speaking countries,must take a proficiency test in Spanish.The sample data below were obtained in a study of the relationship between the numbers of years applicants have studied Spanish and their score on the test.Using a 1% level of significance,do the data provide sufficient evidence to conclude that the slope of the regression line is not 0 and hence that number of years of study is useful as a predictor of score on the test? The regression analysis is given below.
Dependent variable is: Score
R-squared = 83.0%
s = 5.65138 with 10 - 2 = 8 degrees of freedom

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Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Labor-supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to supply.

Elasticity Positive

Positive elasticity indicates that when the price of a good or service increases, the quantity demanded increases, or vice versa, showing a direct relationship between price and demand.

Income Elasticity

The responsiveness of the demand for a good to a change in an individual’s income.