You probably hope your earnings will increase if you spend time studying, but by how much? Statistics Canada answers this question in the research paper from which we have reprinted the following graph.

a) Do you think there’s a clear pattern? Describe the trend.

b) Is the association strong?

c) Is a linear model appropriate for these data? Explain.

d) If a linear model were used on this entire data set, what pattern would you see if the residuals were plotted on a vertical axis against Years of Schooling on a horizontal axis?

e) What transformation could be used before using linear regression on these data?

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1,600 1,400 %24 1,200 1,000 800 + 600 400 + 200 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Years of Schooling Mean Weekly Eamings ($)