Asked by CHARLOTTE BOSCO on May 01, 2024
Verified
Using the regression formula with a slope = 2,000 and an intercept = 15,000,what would the predicted income be for someone who has 25 years of education?
A) $40,000
B) $42,000
C) $45,000
D) $65,000
Slope
The measure of the steepness or incline of a line, representing the rate of change of one variable with respect to another.
Intercept
In statistics and mathematics, the point at which a line crosses the vertical axis of a graph, indicating the value of the dependent variable when all independent variables are zero.
Predicted Income
An estimate of future earnings based on variables such as education, experience, and other relevant factors, often derived using statistical models.
- Apply linear regression strategies to estimate future outcomes using specific predictor variables.
Verified Answer
SW
Shawn WilliamsMay 01, 2024
Final Answer :
D
Explanation :
Since the slope is 2,000, for every additional year of education, the predicted income increases by $2,000. Therefore, someone with 25 years of education would have a predicted income of 2,000(25) + 15,000 = $65,000.
Learning Objectives
- Apply linear regression strategies to estimate future outcomes using specific predictor variables.