Question: Run a regression with respondents’ education as the dependent variable and father’s education as the independent variable. Then answer the following questions regarding the relationship between these two variables. (Yes, you also need to answer the questions asked above. That’s why I asked them.)

a) What is the slope? What is the y-intercept? Provide an interpretation of these two statistics.

b) State the regressed prediction line in the form of an equation Y^ = a + bx

c) Calculate predicted values of the dependent variable for four values (0, 8, 12, and 16) of the independent variable. Mark and label these (x,y) points on the scatterplot, and sketch the prediction line.

d) For this data, what is the average education predicted for respondents whose fathers had no years of education? How much is each year of father’s education “worth” on average in terms of respondents’ years of education?

e) If the null hypothesis is that B = 0 (i.e. that the regression line has a horizontal slope, and that there is a “flat” relationship, such that value of the dependent variable do not vary with values of the independent variable; i.e. there is “no” relationship), test that null hypothesis at the .05 level. (Yes, do all the steps of a hypothesis test: Interpret all values, and make firm conclusions, about both the hypotheses and the prose relationship.)

f) What is the R-squared value? Interpret it.