Years of Schooling (EDUC) Is Regressed on Number of SIBLINGS

question 4

Multiple Choice

Years of schooling (EDUC) is regressed on number of SIBLINGS. The resulting regression equation is EDUC = 16 − 1.00(SIBLINGS) . Someone with three siblings would be predicted to get how many years of schooling?

• A) 13
• B) 15
• C) 16
• D) 17

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Definitions:

Elastic

Describes a situation in which the demand for a product is sensitive to price changes; a small price change results in a significant change in quantity demanded.

Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing to purchase at various price points.

Slope

The measure of steepness or incline, typically describing the change in the vertical over the change in the horizontal.

Price Elasticity

A measure of how the quantity demanded of a good or service changes in response to changes in its price, indicating the sensitivity of consumers to price changes.