QUESTION 7 Human capital theory suggests that those who have invested in higher levels of education will be able to comm
Posted: Sun Oct 03, 2021 11:37 am
QUESTION 7
Human capital theory suggests that those who have invested in
higher levels of education will be able to command higher wages. A
labour economist collected data on annual wages (Y, in $'000) and
years of study (X) from a random sample of 12 employees to test
this proposition. Assuming a linear relationship between Y and X,
the labour economist used a least-squares method and found that the
Y intercept = -23.50 and the slope = 9.73. Also, the sum of
squares total (SST) and the error sum of squares (SSE) were equal
to 11132.92 and 2406.01, respectively. Based on this information,
the coefficient of determination is equal to __________. Round
your finalanswer
to four decimal places.
Note: don't put your answer in
percentage.
Human capital theory suggests that those who have invested in
higher levels of education will be able to command higher wages. A
labour economist collected data on annual wages (Y, in $'000) and
years of study (X) from a random sample of 12 employees to test
this proposition. Assuming a linear relationship between Y and X,
the labour economist used a least-squares method and found that the
Y intercept = -23.50 and the slope = 9.73. Also, the sum of
squares total (SST) and the error sum of squares (SSE) were equal
to 11132.92 and 2406.01, respectively. Based on this information,
the coefficient of determination is equal to __________. Round
your finalanswer
to four decimal places.
Note: don't put your answer in
percentage.