Question

Sir Francis Galton, a cousin of James Darwin, examined the relationship between the height of children and their parents towards the end of the 19th century. It is from this study that the name "regression'' originated. You decide to update his findings by collecting data from 110 college students, and estimate the following relationship: Student-height = 19.6 + 0.73 x Midpar-height, Student-height is the height of students in inches, and Midpar-height is the average of the parental heights. (Following Galton’s methodology, both variables were adjusted so that the average parent height was equal to the average student height.) - Interpret the estimated coefficients using the elasticity method.

Answer 1

Answer:

(1)

When there is change in 1 inch of average height of parents we will have 0.73 inches change in students height.

When there is no change in average height of parents we will have invariant value of student height is 19.6 inches

R^2 says that variation in student height is explained by Average hright of parents will be 45%

Student=19.6+0.73(72.5)=72.53 inches...(This is the prediction od student s heights when average parent s height is 72.53 inches)