We assume that our wages will increase as we gain experience and become more val

Question

We assume that our wages will increase as we gain experience and become more valuable to our employers. Wages also increase because of inflation. By examining a sample of employees at a given point in time, we can look at part of the picture. How does length of service (LOS) relate to wages? The data here (data190.dat) is the LOS in months and wages for 60 women who work in Indiana banks. Wages are yearly total income divided by the number of weeks worked. We have multiplied wages by a constant for reasons of confidentiality.

(d) Give a 95% confidence interval for the slope.

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Explanation / Answer

(d)

Following is the output of regression analysis:

Regression equation is

wages = 55.131 - 0.036* LOS

The 95% confidence interval for slope is : (-0.111,0.038)

SUMMARY OUTPUT Regression Statistics Multiple R 0.127411192 R Square 0.016233612 Adjusted R Square -0.000727878 Standard Error 11.47456244 Observations 60 ANOVA df SS MS F Significance F Regression 1 126.015347 126.015347 0.95708646 0.331985113 Residual 58 7636.603826 131.6655832 Total 59 7762.619173 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 55.13128456 2.939303687 18.75657994 2.6598E-26 49.24762903 61.0149401 los -0.036595966 0.037407409 -0.978307958 0.33198511 -0.11147503 0.038283098

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