Earnings 2019. The Annual Survey of Hours and Earnings

(ASHE) provides the number of jobs, mean annual pay (£) and male mean annual pay (£) for all occupations.

(https://www.ons.gov.uk/employmentandlabourmarket/

peopleinwork/earningsandworkinghours/datasets/agegro upbyoccupation2digitsocashetable20). Use the provided data in the data file on selected occupation titles to analyze whether the variable Mean Annual Pay (£) in the U.K. is related to the following two variables:

Number of Jobs (in thousand)

Male Mean Annual Pay (£)

First, here are the plots and statistical analysis to help you check whether the mean annual pay in the U.K. is related to the number of jobs and male mean annual pay (£).

a) Name and check (to the extent possible) the regression assumptions and their corresponding conditions.

b) If we want a regression to predict the Mean Annual Pay just from Number of Jobs, what would the R2 of that regression be?

Transcribed Image Text:

Mean Annual Pay () Mean Annual Pay () 25,000 20,000 15,000 10,000 5,000 0 Mean Annual Pay () 25,000 20,000 0 50 15,000 10,000 5,000 0 100 Number of jobs (thousand) Mean Annual Pay () 150 200 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 Male Mean Annual Pay () Number Mean of jobs (thousand) Male Mean Annual Pay () Annual Pay () Number of jobs (thousand) 1 Male Mean Annual Pay () -0.646341602 1 Mean Annnual Pay () -0.831470247 0.883256617 1