QUESTION 3 - ANSWER

What is the predicted amount of income earned for an African woman (raceid1 & gender1) of age 30 with a 12 year education?

Multivariate Regression Model Equation:

(predicted income) = 2013.31 + 175.0357(years of education) + 22.34(years of age) - 2614.51(African=1, else=0) - 2359.42(Coloured=1, else=0) - 1518.40(Indian=1, else=0) - 654.28(Woman=1, else=0)

Answer:

(predicted income) = 2013.31 + 175.0357(12) + 22.34(30) - 2614.51(1) - 2359.42(0) - 1518.40(0) - 654.28(1)

= 2013.31 + 175.0357(12) + 22.34(30) - 2614.51 - (0) - (0) - 654.28
= 2013.31 + 2100.4284 + 670.2 - 2614.51 - 654.28

->(predicted income) = 1515.0293 rand for a 30 year old African woman with 12 years of education.

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