Question 3: Research Scenario (SPSS not required)
Suppose you are interested in examining the relationship between annual income and age
brackets. (Younger adults are those between 18~40; older adults are people who are 41+)
Age Bracket: binary variable, (0 = Younger Adults, 1 = Older Adults)
Income: annual income
In particular, you want to determine if younger adults make more or less income than their
older counterparts. The following linear model was proposed to analyse the data.
$INCOME_i = \beta_0 + \beta_1(Age\_Bracket_i) + \epsilon_i$
Shown below is the output from the regression analysis.
Model
1
(Constant)
Age Bracket
Coefficients
Unstandardized Coefficients
Standardized
Coefficients
B
Std. Error
Beta
Sig.
75470.896
15069.181
554.796
784.600
.807
136.034
19.206
<.001
<.001
a. Dependent Variable: Annual income
1) Using the above table, write the fitted model equation and provide an interpretation of the
regression coefficient(s). After interpreting the regression coefficient(s), state whether your
findings are statistically significant. (3 marks)
2) Provide a non-technical summary of your findings without statistical jargon. (1 mark)