Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Someone hypothetically comes to you with some regression results that are confusing him: Dependent Variable: Income in Thousands of Dollars Independent Variable Model 1 Model

Someone hypothetically comes to you with some regression results that are confusing him:

Dependent Variable: Income in Thousands of Dollars
Independent Variable Model 1 Model 2
Education (in years) 3.47*** 3.47
Uses a computer at work (Y = 1,N = 0) --- 7.80
Constant -20.45 -24.20
R-squared .14 .14
n 1000 100

He is confused by what happens to the effect of education between Model 1 and Model 2: the value of the slope is the same, but it is no longer statistically significant.

What is the most likely explanation for this?

(Please explain in words. Calculations are not needed)

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

Elementary Linear Algebra Applications Version

Authors: Howard Anton, Chris Rorres

11th Edition

1118879163, 9781118879160

More Books

Students also viewed these Mathematics questions

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago