Question
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)
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Elementary Linear Algebra Applications Version
Authors: Howard Anton, Chris Rorres
11th Edition
1118879163, 9781118879160
