A social scien tist w o u ld like to a n a ly ze th e re latio n s h ip b e tw e e n e d u c a tio n a l a tta in m e n t a n d salary. H e collects th e fo llo w in g sam p le d a ta , w h e re "E du cation" refers to years o f h ig h e r e d u c a tio n a n d "S alary" is th e in d ivid u al's a n n u a l salary in th o u san d s o f dollars:
E d u c a tio n 3 4 6 2 5 4 8 0 S a la ry $40 53 80 42 70 50 110 38

a. Find th e sam p le regression e q u a tio n fo r th e m o d e l:
S alary =β0 + β1 E du catio n + ε .

b. In te rp re t th e c o e ffic ie n t o f e d u c a tio n .

c. W h a t is th e p re d ic te d salary fo r an in d iv id u a l w h o c o m p le te d 7 years o f h ig h e r e d u catio n ?