You are interested in the relationship between the income of recent college graduates and the income of their parents. Below is a random sample containing information on the annual income of recent college graduates and the annual income of their top income earning parent. Income is measured thousands of dollars. Recent graduate annual income Parent annual income 34 42 51 60 28 35 38 46 59 86 105 92 55 66 62 90 You decide to specify a simple linear regression model where graduate income is the outcome variable and parent income is the predictor. Which of the following describes your regression model? ○ Parent Income = B+B Grad Income + e O Parent Income = B+B Grad Income O Parent Income Grad Income + e Grad Income B+B Parent Income + e 0
You are interested in the relationship between the income of recent college graduates and the income of their parents. Below is a random sample containing information on the annual income of recent college graduates and the annual income of their top income earning parent. Income is measured thousands of dollars. Recent graduate annual income Parent annual income 34 42 51 60 28 35 38 46 59 86 105 92 55 66 62 90 You decide to specify a simple linear regression model where graduate income is the outcome variable and parent income is the predictor. Which of the following describes your regression model? ○ Parent Income = B+B Grad Income + e O Parent Income = B+B Grad Income O Parent Income Grad Income + e Grad Income B+B Parent Income + e 0
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
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Chapter3: Straight Lines And Linear Functions
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Calculate the ordinary least squares estimates for your regression model. What is the estimated slope equal to?
Calculate the ordinary least squares estimates for your regression model. What is the estimated intercept equal to?
Use your estimated regression model to predict the annual earnings for a recent graduate whose parent earns $100,000.
Transcribed Image Text:You are interested in the relationship between the income of recent college graduates and the income of their parents. Below is a random sample containing information on the annual income
of recent college graduates and the annual income of their top income earning parent. Income is measured in thousands of dollars.
Recent graduate annual income
Parent annual income
34
42
5823
51
60
38
46
Parent Income =
59
86
105
92
55
66
62
You decide to specify a simple linear regression model where graduate income is the outcome variable and parent income is the predictor. Which of the following describes your regression
model?
Parent_Income =
90
B+B Grad_Income + e
0 1
B+B Grad_Income
0 1
Parent_Income = Grad Income + ε
O Grad_Income P+P Parent_Income + ε
0
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