Question
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?
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Step by Step Solution
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Step: 1
EARNi B0 B1YRSEDUCi ui With given statistics EARNi 678 BiYRSEDUC...
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Introduction To Business Statistics
Authors: Ronald M. Weiers
7th Edition
978-0538452175, 538452196, 053845217X, 2900538452198, 978-1111524081
