The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) . = 30 + .7x₁ + 3x₂

Also provided are SST = 1200 and SSE = 384.The yearly income (in $) expected of a 24-year-old female individual is

Question

The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) .

The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x<sub>1</sub>) and their gender (x<sub>2</sub>) (0 if male and 1 if female) . = 30 + .7x<sub>1</sub> + 3x<sub>2</sub> Also provided are SST = 1200 and SSE = 384.The yearly income (in $) expected of a 24-year-old female individual is A) $19.80. B) $19,800. C) $49.80. D) $49,800.

= 30 + .7x₁ + 3x₂

Also provided are SST = 1200 and SSE = 384.The yearly income (in $) expected of a 24-year-old female individual is

Quizplus · Accepted Answer

Plug in the values for age and gender in the regression equation: 
y = 30 + 0.7(24) + 3(1) 
y = 30 + 16.8 + 3 
y = 49.8 (in $1000s) 
To convert to dollars, multiply by 1000: 
y = 49.8 * 1000 = $49,800

The Following Estimated Regression Equation Was Developed Relating Yearly Income