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Relationship between wages and years of education

See attached data file.

A study was done to see whether there exists a relationship between wages and the number of years spent on education.The following is the description of the variables needed from the data file:

Wages = annual wages in dollars
Ed= number of years spent on education

a. Use Excel to obtain the information on measures of location and spread of data of both wages and ed.
b. Obtain a scatter diagram of Wage versus Ed for all the data. Add a linear regression line on the same plot. Use correlation and regression analysis for the data using Excel.
c. Predict the wages of a randomly selected person who has spent 12.5 years and 20 years, respectively, on education. Is your prediction reliable? Why?

d. Write a brief report summarizing your findings above. Discuss any reservations you have regarding using this technique for your investigation.


Solution Summary

The solution includes measures of location and spread for wages and years of education. Regression and correlation outputs from Excel for the relationship between wages and years of education are included. Also provided is a report on the descriptive statistics, regression, and correlation.