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Here Is a Set of Nested Models  Dependent Variable: Respondent’s Income in 1000’s \text { Dependent Variable: Respondent's Income in 1000's }

Question 13

Multiple Choice

Here is a set of nested models:
 Dependent Variable: Respondent’s Income in 1000’s \text { Dependent Variable: Respondent's Income in 1000's }
 Independent Variable  Model 1 Model 2 Education in years 3.573.37 Education Squared .02 Hours Worked .71.70 Constant 38.6035.60 R-Squared .20.20\begin{array}{lcc}\text { Independent Variable } & \text { Model } 1 & \text { Model } 2 \\\text { Education in years } & 3.57 * * * & 3.37 * * * \\\text { Education Squared } & --- & .02 \\\text { Hours Worked } & .71^{* * *} & .70^{* * *} \\\text { Constant } & -38.60 & -35.60 \\\text { R-Squared } & .20 & .20\end{array} What is the most appropriate conclusion to make based on these models?


A) The relationship between education and income is linear.
B) The relationship between education and income is non-linear.
C) There is no relationship between education and income.
D) Education has a larger effect on income than hours worked.

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