Multiple Choice
Assuming that you are trying to determine the true effect of how years of education affect career earnings (Earningsi = β0 + β1Educationi + Ui) , and that this effect is positive . What would be the likely induced correlation between Education and Ui of receiving a sample that only had individuals that made over $85,000?
A) Negative
B) Positive
C) There is not enough information.
D) None of the answers is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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