1)You have been asked to run a linear regression to determine if having more education equates to increased income and less unemployment (is there evidence of association?) Choose the variables to include:

T-value - P-value

VIF - be careful there is collinearity

Choose the BEST equation for prediction.

Highest R-Sq. adjusted

Mallows Cp closest to number of variables in the equation

2)You have been asked to answer the question:

Does the number of 18-24 year olds stating that they were interviewed for a job in the past month differ from the expected proportion of all interviews?

education

Population 18 - 24yr

interviewed

1 Less than HS

64011

32000

2 High School

132569

92798

3 AA

247949

210756

4 BA

60948

59119

Note that 25% expected is not necessarily a reasonable expectation - the job market often needs workers at varying rates - not an equal 25% from each education level.