For a sample of 500 college professors,the estimated regression equation is given by = 275 - 3x - 2D,where y is the retirement age,x is pre-retirement annual income (in $1,000s),and D is a dummy variable that takes the value of 0 for male professors and 1 for female professors.Assume that there is a relationship between y,x,and D.For male professors with pre-retirement income of $70,000,the average age of retirement is:
A)75
B)70
C)65
D)60

Question

For a sample of 500 college professors,the estimated regression equation is given by  = 275 - 3x - 2D,where y is the retirement age,x is pre-retirement annual income (in $1,000s),and D is a dummy variable that takes the value of 0 for male professors and 1 for female professors.Assume that there is a relationship between y,x,and D.For male professors with pre-retirement income of $70,000,the average age of retirement is:
A)75 
B)70 
C)65 
D)60

Quizplus · Accepted Answer

For male professors, D=0. Substituting this value in the given regression equation, we get:
y = 275 - 3x - 2(0)
y = 275 - 3(70)
y = 275 - 210
y = 65

Therefore, the average retirement age for male professors with pre-retirement income of $70,000 is 65. Hence, the correct choice is C.

For a Sample of 500 College Professors,the Estimated Regression Equation