Write a simple sentence interpreting the 95% confidence interval for 1%. Figure

Question

Write a simple sentence interpreting the 95% confidence interval for 1%. Figure 3: Wage and Salary Income of Metro East Residents SUMMARY OUTPUT sion Statistics Multiple FR R Square Adjusted R Square0.011836846 Standard Error Observations 0.111541907 0.012441597 44911 4452 1635 ANOVA MS cance F 141496702396 41496702396 20.57309 6.15842E-06 Residual Total 1633 3.29382E+12 2017037910 6343.33532E+12 Standard Error tStat 95% Lower 95.0% U 95.0% P-value Lower 95% 15624.46001 5176.338765 3.018438459 0.00258 5471.497269 25777 42275 5471497269 25777 42275 569.5057019 125.5591347 4.535756825 6.16E-06 323.2317864 815.7796174 323.2317864 815.7796174 AGEP

Explanation / Answer

Here the regression equation is:

y = 569.51*x + 15624.46

Here, y = salary and x = age

The 95% CI for the slope of the regression equation is 323.23 to 815.78

This means that we are 95% confident that the true slope of the regression equation lies in this interval.

It also means that if we construct the regression equation repeatedly many times by taking samples, 95% of the

times the slope will fall in this interval.

The extremely small p-value of magnitude 6.16E-06 indicates that the relationship between these two variables is significant.

Hope this helps !

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