The following estimated regression equation was developed relating average yearly income (y in $1000s) of 50 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) : = 35 + .7x₁ + 3x₂
Also provided are SST = 1400 and SSE = 400. The estimated income (in $) of a 40-year-old male is

Question

The following estimated regression equation was developed relating average yearly income (y in $1000s) of 50 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) :

The following estimated regression equation was developed relating average yearly income (y in $1000s) of 50 individuals with their age (x<sub>1</sub>) and their gender (x<sub>2</sub>) (0 if male and 1 if female) : = 35 + .7x<sub>1</sub> + 3x<sub>2</sub> <sub> </sub> Also provided are SST = 1400 and SSE = 400. The estimated income (in $) of a 40-year-old male is A) $63,000. B) $21. C) $120,000. D) $63.

= 35 + .7x₁ + 3x₂
Also provided are SST = 1400 and SSE = 400. The estimated income (in $) of a 40-year-old male is

Quizplus · Accepted Answer

To estimate the income of a 40-year-old male, we substitute x₁ = 40 and x₂ = 0 (since male is coded as 0) in the regression equation: income = 35 + 0.7(40) + 3(0) income = 35 + 28 income = 63 Therefore, the estimated income of a 40-year-old male is $63,000 (in $1000s).

The Following Estimated Regression Equation Was Developed Relating Average Yearly