A Professor of Economics Wants to Study the Relationship Between

Essay

A professor of economics wants to study the relationship between income (y in $1000s) and education (x in years). A random sample eight individuals is taken and the results are shown below. Predict with 95% confidence the income of an individual with 10 years of education.
CI = ______________ Enter (n1, n2) in thousands
Estimate with 95% confidence the average income of all individuals with 10 years of education.
CI = ______________ Enter (n1, n2) in thousands
Which interval in the previous two questions is narrower: the confidence interval estimate of the expected value of y or the prediction interval for the same given value of x (10 years) and same confidence level?
______________
Why?
________________________________________________________