A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion of the data is as follows:

Salary			Education
	35			4
	71			1
	31			0

a. Find the sample regression equation for the model: Salary = ₀ + ₁Education + . (Round your answers to 2 decimal places.)

b. Interpret the coefficient for Education.

multiple choice

As Education increases by 1 year, an individuals annual salary is predicted to increase by $8,590.

As Education increases by 1 year, an individuals annual salary is predicted to decrease by $7,160.

As Education increases by 1 year, an individuals annual salary is predicted to decrease by $8,590.

As Education increases by 1 year, an individuals annual salary is predicted to increase by $7,160.

c. What is the predicted salary (in $1,000s) for an individual who completed 6 years of higher education? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)