Impact of a degree on income by gender

Question

SourceValueStd_ErrtP_value
Intercept	27271.979	541.012	50.409	<0.0001
ASS	10143.409	593.734	17.084	<0.0001
Female	-17040.056	370.740	-45.962	<0.0001
FemalexASS	-3304.876	823.457	-4.013	<0.0001
Age	507.709	11.491	44.183	<0.0001
Hours	-0.997	0.709	-1.406	0.148

In an attempt to evaluate the difference in the impact of a degree on income by gender a researcher filters their data down to just individuals with a High School Diploma or an Associates Degree and gets the results shown above. Mark all statements that are true:What would the income be for a 49 year old female with an Associates Degree, who works an average of 40 hours a week?

Answer 1

Write the regression equation by reading the coefficient multiplying each variable from the second column of the table:

Income = 27271.979 + 10143.409 x ASS - 17040.056 x Female - 3304.876 x Female x ASS + 507.709 x Age - 0.997 x Hours

Plug in:

ASS = 1 (has an associate degree)

Female = 1 (is a female)

Age = 49

Hours = 40

Answer:

Expected Average Income = $41,908.32