Exhibit 13-8
The following estimated regression model was developed relating yearly income Y in $1,000s) of 30 individuals with their age X1) and their gender X2) 0 if male and 1 if female).
$\hat { Y }$ =30+0.7X1+3X2
Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 13-8. From the above function, it can be said that the expected yearly income of
A) males is $3 more than females
B) females is $3 more than males
C) males is $3,000 more than females
D) females is $3,000 more than males

Question

Exhibit 13-8
The following estimated regression model was developed relating yearly income Y in $1,000s) of 30 individuals with their age X1) and their gender X2) 0 if male and 1 if female).
 $\hat { Y }$ =30+0.7X1+3X2
Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 13-8. From the above function, it can be said that the expected yearly income of
A) males is $3 more than females
B) females is $3 more than males
C) males is $3,000 more than females
D) females is $3,000 more than males

Quizplus · Accepted Answer

The coefficient of X2 (gender) is 3, which means females (X2=1) have an expected income $3,000 more than males (X2=0) since the income is in $1,000s.

Exhibit 13-8 the Following Estimated Regression Model Was Developed Relating Y^\hat { Y }Y^

Exhibit 13-8
the Following Estimated Regression Model Was Developed Relating $\hat { Y }$