What is the slope of the linear regression prediction equation if a person with 12 years of schooling earns $31,000 per year and a person with 13 years of schooling earns $32,500 per year?
A)1
B)12
C)13
D)1,500

Question

Quizplus · Accepted Answer

The slope of the linear regression prediction equation is the change in y (income) with respect to a unit change in x (years of schooling). In this case, we can use the two data points to calculate the slope:
Slope = (change in y) / (change in x) = ($32,500 - $31,000) / (13 - 12) = $1,500
Therefore, the slope of the linear regression prediction equation is $1,500. The answer is D.

What Is the Slope of the Linear Regression Prediction Equation