College

A researcher would like to know the effect of education on income and has hypothesized that the higher one's education, the more income they are likely to get. Here is the data:

Years of Education | Family Income Level
------------------ | -------------------
16 | 89000
16 | 16000
8 | 20000
10 | 8400
6 | 11000
16 | 85000
15 | 24000
14 | 56000
13 | 45000
12 | 98000
13 | 23000
10 | 20000
10 | 4500
14 | 13000
12 | 65000
16 | 80000
12 | 55000
13 | 95000
10 | 3500

Based on your calculations from previous questions, what is the regression coefficient?

Answer :

The parameter (the regression coefficient) indicates the degree to which the line slopes upwards or downwards by indicating the amount by which a change in x must be multiplied by the corresponding average change in y, or the amount by which y changes for each unit increase in x.

Understanding Linear Regression Coefficients, A positive coefficient indicates that the mean of the dependent variable tends to rise in tandem with an increase in the independent variable's value. A negative coefficient indicates that the dependent variable tends to decrease as the independent variable rises.

In a regression model, the statistical measure known as R-Squared (also known as R2 or the coefficient of determination) is used to figure out how much of the variance in the dependent variable can be explained by the independent variable. In other words, the goodness of fit, or r-squared, measurement indicates how well the data fit the regression model.

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