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Linear Regression Analysis

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Using numerical data from attached data set, formulate a hypothesis which can be tested with linear regression analysis.

Perform a regression analysis to test your hypothesis.

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Solution Summary

The solution uses a linear regression analysis to test the hypothesis that wages are positively correlated with age. It shows you how to set up the appropriate null and alternative hypotheses, use a t-test to determine if the slope of the line is significantly different than 0, and use ANOVA (F-test).

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One hypothesis that you could test is that wages are positively correlated with age. That is, you predict that as the age of a worker increases, the wages of the worker also increase (and vice versa). To test this hypothesis statement, you would use the data provided under the columns "wages" and "age". The null and alternative hypotheses would be:

H0: there is no correlation between wages and age
Ha: wages and age are positively ...

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