Human capital theory suggests that those who have invested in higher levels of education will be able to command higher wages. A labour economist collected data on annual wages (Y, in $'000) and years of study (X) from a random sample of 12 employees to test this proposition. Assuming a linear relationship between Y and X, the labour economist used a least-squares method and found that the Y intercept = -23.50 and the slope = 9.73. Also, the sum of squares total (SST) and the error sum of squares (SSE) were equal to 11132.92 and 2406,01, respectively. Based on this information, we can say that a. around 21.61% of the variation in Y is explained by the variation in X. b. around 21.61% of the sample variability in Y is due to factors other than X c. around 78.39% of the sample variability in Y is due to factors other than X d. around 21.61% of the variation in X is explained by the variation in Y.

Human capital theory suggests that those who have invested in higher levels of education will be able to command higher wages. A labour economist collected data on annual wages (Y, in $'000) and years of study (X) from a random sample of 12 employees to test this proposition. Assuming a linear relationship between Y and X, the labour economist used a least-squares method and found that the Y intercept = -23.50 and the slope = 9.73. The labour economist also found that the standard error of the slope was 1.61. Based on this information, what statistical decision would you made if you are testing the null hypothesis that there is no linear relationship between the two variables, X and Y? a. Accept the null hypothesis. b. Reject the null hypothesis. c. Do not reject the null hypothesis. d. Reject the alternative hypothesis.

Human capital theory suggests that those who have invested in higher levels of education will be able to command higher wages. A labour economist collected data on annual wages (Y, in $'000) and years of study (X) from a random sample of 12 employees to test this proposition. Assuming a linear relationship between Y and X, the labour economist used a least-squares method and found that the Y intercept = -23.50 and the slope = 9.73. The labour economist also found that the standard error of the slope was 1.61. Based on this information, what is the value of the t test statistic if you are testing the null hypothesis that there is no linear relationship between the two variables, X and Y? Round your final answer to two decimal places.

Which of the following is a prediction of human capital theory?Question 11Answera.The value of an individual's skills and abilities is a function of the time and expense required to acquire them.b.Higher wages improve efficiency by attracting workers who will perform better.c.Jobs with negative characteristics require higher pay to attract workers.d.Pay policies signal the kinds of behaviour an employer seeks from employees.e.Job seekers will not accept jobs when pay is below a certain wage.

A consumer's spending is widely believed to be a function of their income. To estimate this relationship, a university professor randomly selected 19 of his students and collected information on their spending (Y, in dollars) and income (X, in dollars) patterns in week 6 of the semester. Assuming a linear relationship between Y and X, the professor used the least-squares method and found that the Y intercept = 20.90 and the slope = 0.66. Also, the sum of squares total (SST) and the error sum of squares (SSE) were equal to 65600.74 and 12769.51, respectively. Based on this information, the coefficient of determination can be interpreted as follows a. 80.53% of the variation in weekly income is explained by the variation in a student's weekly spending. b. 19.47% of the variation in weekly spending is explained by the variation in a student's weekly income. c. 80.53% of the variation in weekly spending is explained by the variation in a student's weekly income. d. 19.47% of the variation in weekly income is explained by the variation in a student's weekly spending.

Human capital increases with on-the-job training.Group of answer choicesTrueFalse