Using the regression formula with a slope = 1,000 and an intercept = 25,000,what would the predicted income be for someone who has 20 years of education?
A)$40,000
B)$42,000
C)$45,000
D)$47,000

Question

Quizplus · Accepted Answer

The regression formula with a slope of 1,000 and an intercept of 25,000 is:

Income = (1,000 x years of education) + 25,000

To find the predicted income for someone with 20 years of education, we plug in 20 for years of education:

Income = (1,000 x 20) + 25,000
Income = 20,000 + 25,000
Income = 45,000

Therefore, the predicted income for someone with 20 years of education is $45,000, which corresponds to choice C.

Using the Regression Formula with a Slope = 1,000 and an Intercept