A study tests the effect of earning a Master's degree on the salaries of professionals. Suppose that the salaries of the professionals (S) are not dependent on any other variables. Let D, be a variable which takes the value 0 if an individual has not earned a Master's degree, and a value 1 if they have earned a Master's degree What would be the regression model that the researcher wants to test? O A. S,= Po+B,D, +u, i=1, , n. O B. S,= Bo+B1 + u, i= 1, ., n. OC. 1=Po+B,S, + u, i= 1, .,n. O D. 0=Po + B,S, + u,, i= 1, . n. Suppose that a random sample of 160 individuals suggests that professionals without a Master's degree earn an average salary of $59,000 per annum, while those with a Master's degree earn an average salary of S$80,000 per annum. and that of Bo will be $ The OLS estimate of the coefficient B, will be $
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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