Using the data in the accompanying table estimate the model: Salary = 0 + 1

Using the data in the accompanying table estimate the model: Salary = β₀ + β₁Education + ε, where Salary is measured in $1,000s and Education refers to years of higher education.

a. Construct the 90% confidence interval for the expected salary for an individual who completed 6 years of higher education.
b. Construct the 90% prediction interval for salary for an individual who completed 6 years of higher education.
c. Comment on the difference in the widths of theseintervals.

Transcribed Image Text:

Education 3 46 25 4 80 Salary 40 53 80 42 70 50 110 38