Question

The following regression equation pertains to the population of male workers in a large city: ŷ = -5 + .5*age + .25*age*hs This equation tells us that if we created an intervention that induced adolescents to graduate from high school and it was 100% effective, we could then expect that their hourly wages would increase by 75 cents per hour each year on average rather than the 50 cent an hour increase they would have otherwise experienced.

a)True

b)False

Answer 1

This is false, it ia the wrong representation or interpretation of the regression equation.

The true interpretation is

The regression equation pertains to the population of male workers in a large city: ŷ = -5 + .5*age + .25*age*hs This equation tells us that if we created an intervention that induced adolescents to graduate from high school and it was 100% effective, we could then expect that their hourly wages would increase by 25 cents per hour each year on average rather than the 50 cent an hour increase they would have otherwise