According to the Following Regression Equation: INCOME = 9000

question 29

Short Answer

According to the following regression equation: INCOME = 9000 + 2500(EDUC) − 100(AGE) − 5000(FEMALE), an increase of one year in education results in how much of a change in income? (State both the amount of change and the direction.)

---

Definitions:

Cost Of Goods Sold

Expenses directly linked to manufacturing the goods a business sells, which encompass materials and labor.

Rate Of Return

The increase or decrease in the value of an investment during a specific time frame, represented as a proportion of the original investment's price.

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Acid Test Ratio

A stringent indicator of a company's liquidity, measuring its ability to meet short-term obligations with its most liquid assets.