1- The regression equation Salary = 35,000 + 3500 YearsExperience + 1200 YearsCo

Question

1- The regression equation Salary = 35,000 + 3500 YearsExperience + 1200 YearsCollege describes employee salaries at Streeling Research Labs. The standard error is 2500. Doris has 20 years' experience and 4 years of college. Her salary is $113,000. What is Doris's standardized residual?

a) -1.28

b) +1.28

c) +3.20

d) -0.24

2- When homoscedasticity exists, we expect that a plot of the residuals versus the fitted Y:

a) will show no pattern at all.

b) will yield a Durbin-Watson statistic near 2.

c) will form approximately a straight line.

d) crosses the centerline too many times.

a) 1.833

b) 3.294

c) -2.228

d) 0.762

Explanation / Answer

1) salary = 35000 + 3500*20 + 1200*4 = 109800
residual = 113000 - 109800 = 3200, standardized residual = 3200/2500 = 1.28

2) crosses the centerline too many times.

3) slope, b1 = [n*(xy) - xy]/[n*x2 - (x)2]
x = 88, y = 160, xy = 2288, x2 = 1256

b1 = [8*2288 - 88*160]/[8*1256 - 882] = 1.833

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