Computing slope of an ols regression line

Reference no: EM1321403

1) Consider following regression equation:

WAGE_i = -37.25 + 3.85*EDUCATION_i

where WAGE is hourly wage in dollars, and education is number of years of education. What wage do you forecast for person with 16 years of education?

2) Consider following regression equation:

WAGEi = -37.25 + 3.85*EDUCATIONi

Where WAGE is hourly wage in dollars, and education is number of years of education. Interpret the slope.

3) Consider follow data on moviegoer spending on snacks:

Age (X)	Dollars Spent (Y)
30	8.50
50	10.00
24	3.00
12	5.25
33	20.75
18	6.00

Compute b1, slope of an OLS regression line using dollars spent as dependent variable (Y) and age as independent variable (X).

Reference no: EM1321403

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