A company has undertaken a study of 16 administrative assistants\" yearly salari

Question

A company has undertaken a study of 16 administrative assistants" yearly salaries (in thousands of dollars). They want to predict salaries from several variables. The variables considered to be potential predictors of salary are X1 = months of service. X2 = years of education, X3 = scorn on standardized test. X4 = words per minute of typing speed, and X5 = ability to lake dictation in words per minute. A multiple regression model with all five variables was run, resulting in the output given. The regression model is y = -5.4 + 1.49x_1 + 1.22x_2 -0.18x_3 + 0.24x_4 - 0.14x_5. From this model, what is the predicted salary of a secretary with 2.5 years (30 months) experience. 10th grade education (10 years of education), 80 on the standardized test. 45 wpm typing speed, and the ability to take 30 wpm dictation? A. $58, 400 B. $42, 600 C. $145, 325 D $43, 700 E. $48, 471

Explanation / Answer

right choice is (E) $48471.

from the given analysis

the regression equation is y=-6.5+1.49x1+1.22x2-0.18x3+0.24x4-0.14x5

(you have changed the constant value to -5.4 from -6.5

for x1=30,x2=10,x3=80,x4=45,x5=30

the y=-6.5+1.49*30+1.22*10-0.18*45+0.24*45-0.14*30=48.9 thousand

the nearest choice is (E) $48471.

the difference between 48.9 thosand and 48471 may be due to two decimal place approximation of regression coefficient.

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