A faculty group wants to determine whether job rating (x) is a useful linear pre

Question

A faculty group wants to determine whether job rating (x) is a useful linear predictor of raise (y). Consequently, the group considered the straight-line regression model

E(y)=0+1x.

Using the method of least squares, the faculty group obtained the following prediction equation. Interpret the estimated slope of the line.

y=14,0002,000x

A.

For a 1-point increase in an administrator's rating, we estimate the administrator's raise to decrease $2,000.

B.

For an administrator with a rating of 1.0, we estimate his/her raise to be $2,000.

C.

For a 1-point increase in an administrator's rating, we estimate the administrator's raise to increase $2,000.

D.

For a $1 increase in an administrator's raise, we estimate the administrator's rating to decrease 2,000 points.

Explanation / Answer

Interpret the estimated slope of the line:

For a 1-point increase in an administrators rating, we estimate the administrators raise to decrease $2000.

Answer is A.

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