This regression analysis examines the relationship between the number of years of formal
Education a person has and their annual income. According to this model, about how much more
Money do people who finish a 4-year college program earn each year, on average, than those with
Only a 2-year degree? Dependent variable is Income
R-squared $= 25.8 \%$
$\mathrm { s } = 3888$ with 57 degrees of freedom
$\begin{array} { l c c } \text { Variable } & \text { Coefficient } & \text { s.e. of Coeff } \ \text { Constant } & 3984.45 & 6600 \ \text { Education } & 2668.45 & 600.1 \end{array}$
A) $2710
B) $9321
C) $2006
D) $5337
E) $7968

Question

Quizplus · Accepted Answer

The coefficient for Education is $2668.45, which represents the average increase in income for each additional year of education. The difference between a 4-year and a 2-year degree is 2 years, so the increase in income is $2 \times 2668.45 = 5336.9$, approximately $5337.

This Regression Analysis Examines the Relationship Between the Number of Years