The ages of a large group of people have an average of 52 years and an SD of 6 years. The average annual income of the people is $48,000 and the SD is $27,000. The correlation between the two variables is 0.45.

The r.m.s. error of regression for estimating income based on age is closest to:

5.4 thousand dollars
5.4 years
24.11 thousand dollars
24.11 years

whats the best answer?

Is the scatter diagram of the two variables football shaped?

a.No.
b.Yes.
c.Maybe, or maybe not; there is not enough information to decide.

Question

The ages of a large group of people have an average of 52 years and an SD of 6 years. The average annual income of the people is $48,000 and the SD is $27,000. The correlation between the two variables is 0.45.

The r.m.s. error of regression for estimating income based on age is closest to:


5.4 thousand dollars
5.4 years
24.11 thousand dollars
24.11 years

whats the best answer?

Is the scatter diagram of the two variables football shaped?


a.No.
b.Yes.
c.Maybe, or maybe not; there is not enough information to decide.

kropot72 · Answer

http://openstudy.com/study#/updates/514ab833e4b07974555d91f5

nurali · Answer

24.11 thousand dollars
No

kropot72 · Answer

The answer has to be a dollar amount, therefore the only possible choices narrow down to 5.4 thousand dollars and 24.11 thousand dollars. It is hard to believe that the correct answer would be 5.4 thousand dollars when the standard deviation for annual income is $27,000.