Question

When plotting log wages (y-axis) against years of schooling (x-axis), the slope of the regression line indicates Group of answer choices the average years of schooling. the economic return to each additional year of schooling measured in dollars. the average wage. the economic return to each additional year of schooling measured in percentage terms. the average logged wage.

Answer 1

When plotting log wages (y-axis) against years of schooling (x-axis), the slope of the regression line indicates

the economic return to each additional year of schooling measured in dollars.

Step-by-step explanation:

While the slope indicates the steepness of a line, the intercept indicates the location where the slope intersects an axis. Together, the slope and the intercept define the linear relationship between the two variables: the independent and the dependent variables. They can be used to estimate an average rate of change. In a line of best fit, described by the equation ŷ = bX + a, the slope of the line is b while a is the intercept (i.e., the value of Y when X = 0).