Introduction To Statistics And Data Analysis
6th Edition
ISBN: 9781337793612
Author: PECK, Roxy.
Publisher: Cengage Learning,
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Chapter 13.2, Problem 22E
Do taller adults make more money? The authors of the paper “Stature and Status: Height, Ability, and Labor Market Outcomes” (Journal of Political Economics [2008]: 499–532) investigated the association between height and earnings. They used the simple linear regression model to describe the relationship between x = Height (in inches) and y = log(Weekly gross earnings in dollars) in a very large sample of men. The logarithm of weekly gross earnings was used because this transformation resulted in a relationship that was approximately linear.
The paper reported that the slope of the estimated regression line was b = 0.023 and the standard deviation of b was sb = 0.004. Carry out a hypothesis test to decide if there is convincing evidence of a useful linear relationship between height and the logarithm of weekly earnings. Assume that the basic assumptions of the simple linear regression model are reasonably met.
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Chapter 13 Solutions
Introduction To Statistics And Data Analysis
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