A researcher has designed the relationship between the salaries of selected employees of an organization (shown as "EARN" in $/hour) and their years of education (shown as "YRSEDUC", in years) as hereunder. A total number of (i) employees were selected for this study:
EARN(i) = B(0) + B(1) + YRSEDUC(i) + u(i)
Moreover, by applying this model on a database, the researcher found that the GRETL result shows the slope coefficient of the regression line as B(1) = 0.39
Using the above findings, answer the following questions:
A-Comment about the possible relationship between the two variables.
B-How do you interpret the slope coefficient of 0.39
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