For your senior thesis, you are testing whether more years of schooling leads to higher income. You gather some…

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For your senior thesis, you are testing whether more years of schooling leads to higher income. You gather

some data and produce the following regression output.

Ỷ = 25989.29 +1133.409X

528.3532, R² = 0.1737, n=21

a). (5 pts) Which is the dependent variable Y and which is the independent variable X.

b). (5 pts) Interpret the R² value.

c). (5 pts) Interpret the estimate bo of the coefficient Bo

d). (5 pts) Conduct a two-sided hypothesis test for the population slope coefficient 31.

e). (5 pts) According to your results is years of schooling correlated to higher income? If yes, what is the

sign of the correlation?

Sbi

=

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