Question

Exhibit 15-8 The following estimated regression model was developed relating yearly income (y in $1000s) of 30 individuals with their age (x1) and their gender (x2) (0 if male and 1 if female). ŷ = 30 + 0.7x1 + 3x2 Also provided are SST = 1200 and SSE = 384. The yearly income of a 24-year-old female individual is _____. a. $49.80 b. $19,800 c. $19.80 d. $49,800

Answer 1

d. $49,800

Step-by-step explanation:

The yearly income of a 24 year old female is $49,800. Relationship between SST and SSE is defined as SST - SSE.

The equation describes the relationship between two variables that these variables are independent.