1The following sample data contains the number of years of college and the curre

Question

1The following sample data contains the number of years of college and the current annual salary for a random sample of heavy equipment salespeople. A researcher believes that spending more years in college leads to higher annual income. (40 points) Annual Income (In Thou sands) 20 23 25 35 28 Years in College 37 30 40 39 The research used StatPlus to estimate regression model and got the results below Regression Statistics 0.95 0.902 0.89 2.648 10 R-square Adjusted R-square ANOVA MS 518.4 5184 73.925 0.000 Regression Residua Total 56.1 7.013 Coefficient Standard Error LCL UCL Stat 2648 1.793 14.007 2.983 0.018 5269 0.131 0.598 000 Intercept 7.9 a) Which variable is the dependent variable? Which is the independent variable? (5 points) b) Determine the least squares estimated regression line. (5 points)

Explanation / Answer

SolutionA:

Dependent varaible is Annual Income

Independent variabe is years in college

SolutionB:

The least sqaures regression line is

annual_income=7.9+7.2(years in college)

SolutionC:

Coefficient of independent variablle is Slope

slope=7.2

change in y/change in x=7.2

change in years in college/change in annual income=7.2

A year increase in college ,annual income increases by 7.2

Solutiond:

for y intercept x=0

years of experience=0

A person who has no years in college,annual income is 7.9

Solutione:

For years of exp=3

we have

annual_income=7.9+7.2(years in college)

=7.9+7.2(3)

=29.5

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