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We Hypothetically Observe That the Higher One's Education, the Happier

Question 8

Multiple Choice

We hypothetically observe that the higher one's education, the happier one is. We hypothesize that this is actually because of income: people with higher education tend to make higher incomes, and it is these higher incomes, not education, that causes the higher happiness. Here are hypothetical models (using a dependent variable where 0=not at all happy, up to 10=very happy) :
 Independent Variable  Model 1  Model 2 Education (in years)  .35??? Income (in thousands of dollars)  .03 Constant .502.50 R-Squared .10.15n10001000\begin{array}{lcc}\text { Independent Variable } & \text { Model 1 } & \text { Model } 2 \\\text { Education (in years) } & .35^{* * *} & ? ? ? \\\text { Income (in thousands of dollars) } & --- & .03^{* * *} \\\text { Constant } & .50 & -2.50 \\\text { R-Squared } & .10 & .15 \\\mathrm{n} & 1000 & 1000\end{array} To support the hypothesis, what is the most likely number that would go in the place of the "???" in Model 2?


A) .03
B) .20**
C) .35***
D) .50***

Correct Answer:

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