From the General Social Survey, is there a direct link between income and education? Test the null hypothesis that there is no relationship between a respondent’s income (REALRINC) and their highest year of school completed (EDUC). Hint: ANALYZE, REGRESSION, LINEAR, and then specify variables. Income is the dependent variable.
a. Apply the ANOVA test of regression. Is it significant?
b. What is the regression slope and intercept?
c. Predict the amount of income in constant dollars (year 2000) for a person who has completed 12 years of education, and one who has completed 16 years of education.
d. Find the coefficient of determination. What does it mean?