A manager at a local bank analyzed the relationship between monthly salary ( Y ,
ID: 3315857 • Letter: A
Question
A manager at a local bank analyzed the relationship between monthly salary (Y, in $) and length of service (X, measured in months) for 30 employees. She estimates Salary = 0 + 1Service + . The following table summarizes a portion of the regression results:
ANOVA__________________________________________________________
df SS MS F
Regression 1 555420 555420 7.64
Residual 27 2465481 91314
Total 29 3020901__________________________
Coefficients Standard Error tStat p-value___
Intercept 784.92 322.25 2.44 0.02
Service 9.19 3.20 2.87 0.01
1). The regression equation is estimated as
a). = 9.19 + 784.92X1 b). = 784.92 – 9.19X1 c). = 322.25 + 3.20X1 d). = 784.92 + 9.19X1
2). The monthly salary of an employee that has worked for 48 months at the bank is closest to:
a). $441 b). $785 c). $1,050 d). $1,226 25).
3.)The net regression coefficient (b1) indicates
a). salary will increase by $9.19 for each additional month of service by an employee. b). salary will decrease by $9.19 for each additional month of service by an employee. c). salary will not change for each additional month of service by an employee. d), salary will increase by $784.92 for each additional month of service by an employee.
Explanation / Answer
The regression equation is formed using the coefficents as
Y = 784.92 +9.19*Service
so the correct answer for 1
is
Y = 784.92 +9.19*x1
hence D
2)
put x = 48 in the regression equation
Y = 784.92 +9.19*48 = 1226.04
= 1226 hence D
3)
the regression coefficent b1 is 9.19 , this means that for every unit increase in the number of service months the Y value increases by 9.19 units
hence a
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