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Here Is a Set of Nested Models  Dependent Variable: Respondent’s Income in 1000’s \text { Dependent Variable: Respondent's Income in 1000's }

Question 6

Multiple Choice

Here is a set of nested models:
 Dependent Variable: Respondent’s Income in 1000’s \text { Dependent Variable: Respondent's Income in 1000's }

 Independent Variable  Model 1 Model 2 Education in years 3.573.57 Education Squared .28 Hours Worked .71.71 Constant 38.602.55 R-Squared .20.30\begin{array}{lcc}\text { Independent Variable } & \text { Model } 1 & \text { Model } 2 \\\text { Education in years } & 3.57^{* * *} & -3.57^{* * *} \\\text { Education Squared } & --- & .28 * * * \\\text { Hours Worked } & .71^{* * *} & .71^{* * *} \\\text { Constant } & -38.60 & 2.55 \\\text { R-Squared } & .20 & .30\end{array}


A) Because the linear effect does not lose its statistical significance in Model 2, the linear model is the better model.
B) Neither the linear model nor the non-linear model is better.
C) Because the squared slope is statistically significant, the non-linear model is the better model.
D) Because the R-squared for the non-linear model is much higher than the R-squared for the linear model, the non-linear model is the better model.

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