Linear Regression Analysis

For the first single linear regression (figure 1-3 and 1-4, associate’s and below), in order to test the question, it was useful for one to view a regression for educational levels under an associate degree because this is generally considered lower education. When looking at combined lower education with combined higher education, which is our second single linear regression (figure 1-5 and 1-6, bachelor’s and above), it was expected to see a correlation for both of them. The results were expected to have a high statistical significance relating to our R-squared value and adjusted R-squared. In addition to this, it was expected that the coefficient would higher for higher education than lower education. The research proved that simple linear …show more content…
The educational level is the independent variable and income is the dependent. Therefore, the expected results anticipated statistical significance for every dependent variable’s p-value. With a ninety-five percent confidence interval, only the dependent variables Associate 's degree through Doctorate degree prove to hold a statistical significance. From these unexpected results the f-statistic for all the dependent variables held to be statistically significant at 0.0000, as seen in figure 1-8. These results can be explained by the regression line, valued at approximately 84%. The dependent variables that the study failed to reject, (less than 9th grade education through some college education) can be explained through observing figure 1-2. Figure 1-2 proves that there is not significant rise in income over the years 1900-2010, and additionally there is not a large gap in income levels for those the education levels not consisting of a college degree. Thus, the relationship between education level and income proves to be more statistically significant for higher education, rather than lower educational levels. For the results from the independent variable, yearly median income, only dependent variables Associate’s degree through Doctoral degree reject the null hypothesis, and are statistically …show more content…
Specifically, the study questioned whether there is a statistically significant relationship between level of education attainment and income? Before conducting the research, it was important to examine a number of other studies conducted on a similar topic. From these reviews, one will determine that there are varying opinions and findings on the matter. Some authors conclude that education attainment is not a significant determinant of income level. However, most of the studies found that education attainment is a factor among many other variables in income level. Most authors make a note of the number of other variables readers need to be aware of. The research group conducting this particular study hypothesized that income is determined significantly by educational attainment. Theoretically, those pursuing a higher level of education should therefore earn more income than those who do not achieve the same level of