Given the amount of money and effort that you have spent on your education, you wonder if it was (is)all worth it. You therefore collect data from the Current Population Survey (CPS)and estimate a linear relationship between earnings and the years of education of individuals. What would be the effect on your regression slope and intercept if you measured earnings in thousands of dollars rather than in dollars? Would the regression R² be affected? Should statistical inference be dependent on the scale of variables? Discuss.

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The Answer of Given the amount of money and effort that you have spent on your education, you wonder if it was (is)all worth it. You therefore collect data from the Current Population Survey (CPS)and estimate a linear relationship between earnings and the years of education of individuals. What would be the effect on your regression slope and intercept if you measured earnings in thousands of dollars rather than in dollars? Would the regression R² be affected? Should statistical inference be dependent on the scale of variables? Discuss.

Given the Amount of Money and Effort That You Have