Concept explainers
Do taller adults make more money? The authors of the paper “Stature and Status: Height, Ability, and Labor Market Outcomes” (Journal of Political Economics [2008]: 499–532) investigated the association between height and earnings. They used the simple linear regression model to describe the relationship between x = Height (in inches) and y = log(Weekly gross earnings in dollars) in a very large sample of men. The logarithm of weekly gross earnings was used because this transformation resulted in a relationship that was approximately linear.
The paper reported that the slope of the estimated regression line was b = 0.023 and the standard deviation of b was sb = 0.004. Carry out a hypothesis test to decide if there is convincing evidence of a useful linear relationship between height and the logarithm of weekly earnings. Assume that the basic assumptions of the simple linear regression model are reasonably met.
Trending nowThis is a popular solution!
Chapter 13 Solutions
Introduction To Statistics And Data Analysis
- Calculus For The Life SciencesCalculusISBN:9780321964038Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.Publisher:Pearson Addison Wesley,Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt