A regression slope of 2.5 for predicting monthly income in rupees from years of experience means that:
Correct answer: C. Predicted income rises by 2.5 units per extra year
- A. Income rises by 2.5 rupees per year
- B. Experience rises by 2.5 years per rupee
- C. Predicted income rises by 2.5 units per extra year
- D. Income and experience have correlation 2.5
Explanation
The slope gives the change in the predicted response for one unit of the explanatory variable. Thus predicted income increases by 2.5 income units for each additional year of experience, according to the model.
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About Correlation and Regression
Correlation describes the direction and strength of association between two variables using scatter diagrams and correlation coefficients. Regression covers fitted lines, regression equations, prediction and least squares, with a clear distinction between association and causation and between estimating a response value and reversing the roles of the variables.
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