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Assignment
An economist was interested in modeling the relationship among annual income, level of education, and work experience. The level of education is the number of years of education beyond eighth grade, so 1 represents completing 1 year of high school, 8 means completing 4 years of college, and so on. Work experience is the number of years employed in the current profession.
From a random sample of 12 individuals, this economist obtained the following data:
Work Experience (years)
Level of Education
Annual Income ($ thousands)
12
6
34.7
14
3
17.9
4
8
22.7
16
53.1
33.0
20
41.4
25
1
20.7
14.6
24
97.3
28
9
72.1
11
49.1
15
52.0
Required:
(a) Please state the regression equation corresponding to the above scenario.
(b) Please conduct a regression analysis of these data. Be sure to include (e.g., copy and paste) your relevant regression output as part of your response.
(c) What can you conclude regarding the relationship among annual income, level of education and work experience based on your regression analysis results in part (b)? Be sure to cite relevant numeric indices or results of your regression analysis as part of your response.
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