A manager at a local bank analyzed the relationship between monthly salary ( y ,

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 the model:

Salary = 0 +1Service + . The following ANOVA table below shows a portion of the regression results.

   

   

Which of the following is the monthly salary of an employee that has worked for 48 months at the bank?

rev: 11_17_2017_QC_CS-109762

df SS MS F   Regression 1 555,420 555,420 7.64   Residual 27 1,962,873 72,699   Total 28 2,518,293 Coefficients Standard Error t-stat p-value   Intercept 784.92 322.25 2.44 0.02 Service 9.19 3.20 2.87 0.01

Explanation / Answer

The regression equation using the coefficients from the given table is : Salary =784.92+ 9.19*Service

thus for 48 months of service the salary=784.92+ 9.19*48=1226.04 or option D

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