QUESTION 10 Human capital theory suggests that those who have invested in higher levels of education will be able to com
Posted: Sun Oct 03, 2021 11:37 am
QUESTION 10
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. Based on this
information, the predicted mean annual wage for an employee who
completed 10 years of study would be ____________ dollars.
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. Based on this
information, the predicted mean annual wage for an employee who
completed 10 years of study would be ____________ dollars.