Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A researcher has designed the relationship between the salaries of 100 selected employees of an organization (shown as EARN in $/hour) and their years of

A researcher has designed the relationship between the salaries of 100 selected employees of an organization (shown as "EARN" in $/hour) and their years of education (shown as "YRSEDUC", in years) using the following regression equation:

EARN(i) = B(0) + B(1) YRSEDUC(i) + u(i)

By applying this model on a database, the researcher found that the GRETL result shows the intercept coefficient of the regression line as B(0) = 6.78.

Using the above findings to answer the following questions:

A-Interpret the intercept of this regression.

B-What is the unit of intercept in this regression?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Management

Authors: Timothy W Koch, Mark S Cracolice

7th Edition

1111804265, 9781111804268

More Books

Students also viewed these Economics questions