Running head: ECONOMICS AND QUANTITATIVE ANALYSISEconomics and quantitative analysisName of the universityName of the studentAuthor Note
1ECONOMICS AND QUANTITATIVE ANALYSISPurpose: The chief purpose of this report is to establish a relation between education and wage.This report will state that how education influences wages of workers. Moreover, this reportwill try to find out a positive or negative relation between these two variables. To understandthe relation between these two variables, a linear regression line has drawn. Figure 1:Simplelinearregressionbetweeneducationand wageBackground:People try to get higher level of education to obtain higher wage rate per hour. It isbelieved that higher level of education makes skilled worker (Yirmiyahu, Rubin and Malul2017). Moreover, a skilled worker gets higher amount of wages compare to an unskilled orsemi-skilled worker. Economists also consider this relation as interesting. The government ofa country can impose any policy to promote higher education. On the other side, skilledworkers work efficiently as they get higher wages compare to others. This further helps acountry to increase its gross domestic product (GDP). People with higher level of educationgenerally enjoy a good standard of living. Hence, for developing and developed countries,468101214161820220102030405060708090f(x) = 2.12 x − 6.91EducationWage
2ECONOMICS AND QUANTITATIVE ANALYSISeducation is an important factor (Verger, Altinyelken and Novelli 2018). It further helps acountry to develop. Therefore, education is an important factor for a country’s economy.Hence, economists try to establish a relation between education and wage rate of a country.This further helps to implement a theory. Moreover the government of a country can applydifferent policies, based on the relation.Method:Here, education is considered as an independent variable and wage is considered as adependent variable. To obtain higher level of education, a person has spent many years. Inthis report, education is measured by this number of years. Moreover, wage is measured asthe earning per hour of a worker. To understand an association between education and wage,a statistical tool will be used. The simple linear regression analysis is used to analyse thisrelation (Fox 2015). Furthermore, a scatter plot will help to draw a simple linear regressionanalysis. To analyse further, a trending line will help to plot this regression line by coveringmaximum scattered points. By analysing this regression line, one can understand that whethereducation has any impact on wage or not. It will also describe that whether both variableshave positive or negative relations. Results:This section will summarise various outcomes of both education and wage by doingstatistical analysis. In this section of the report, descriptive analysis related to education is done.Education:
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