A researcher is studying the family income in a region She h

A researcher is studying the family income in a region. She has gathered the following computer output from a sample ol\'35 families.

Solution

a)

Family Income = 18.25 + 4.80*Education + 0.95*Age + 0.06*Family

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b)

As

t(Age) = 0.95/0.55 = 1.727272727

and as alpha = 0.05, two tailed, df = n - 2 = 33,

tcrit = 2.0345

As t < 2.0345, WE DO NOT INCLUDE AGE. IT IS NOT SIGNIFICANT.

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c)

As t(education) = 3.556 > 2.0345, we WILL INCLUDE EDUCATION. IT IS SIGNIFICANT.