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

To calculate the expected yearly income of a 24-year-old female, we substitute x₁ = 24 and x₂ = 1 (since female = 1) in the estimated regression equation: Y = 30 + 0.7(24) + 3(1) = $49.8 (in $1000s), which is equal to $49,800. So the answer is D.

The Following Estimated Regression Equation Was Developed Relating Yearly Income