SALARY EDUC EXPER TIME 39000 12 0 1 40200 10 44 7 42900 12 5 30 43800 8 6 7 43800 8 8 6 43800 12 0 7 43800 12 0 10 43800 12 5 6 44400 15 75 2 45000 8 52 3 45000 12 8 19 46200 12 52 3 48000 8 70 20 48000 12 6 23 48000 12 11 12 48000 12 11 17 48000 12 63 22 48000 12 144 24 48000 12 163 12 48000 12 228 26 48000 12 381 1 48000 16 214 15 49800 8 318 25 51000 8 96 33 51000 12 36 15 51000 12 59 14 51000 15 115 1 51000 15 165 4 51000 16 123 12 51600 12 18 12 52200 8 102 29 52200 12 127 29 52800 8 90 11 52800 8 190 1 52800 12 107 11 54000 8 173 34 54000 8 228 33 54000 12 26 11 54000 12 36 33 54000 12 38 22 54000 12 82 29 54000 12 169 27 54000 12 244 1 54000 15 24 13 54000 15 49 27 54000 15 51 21 54000 15 122 33 55200 12 97 17 55200 12 196 32 55800 12 133 30 56400 12 55 9 57000 12 90 23 57000 12 117 25 57000 15 51 17 57000 15 61 11 57000 15 241 34 60000 12 121 30 60000 15 79 13 61200 12 209 21 63000 12 87 33 63000 15 231 15 46200 12 12 22 50400 15 14 3 51000 12 180 15 51000 12 315 2 52200 12 29 14 54000 12 7 21 54000 12 38 11 54000 12 113 3 54000 15 18 8 54000 15 359 11 57000 15 36 5 60000 8 320 21 60000 12 24 2 60000 12 32 17 60000 12 49 8 60000 12 56 33 60000 12 252 11 60000 12 272 19 60000 15 25 13 60000 15 36 32 60000 15 56 12 60000 15 64 33 60000 15 108 16 60000 16 46 3 63000 15 72 17 66000 15 64 16 66000 15 84 33 66000 15 216 16 68400 15 42 7 69000 12 175 10 69000 15 132 24 81000 16 55 SUMMARY OUTPUT Regression Statistics Multiple R 0.41198516 R Square 0.16973178 Adjusted R Square 0.16060795 Standard Error 6501.12045 Observations 93 ANOVA df SS MS F Significance F Regression 1 786253429 786253429 18.60313 4.08E-05 Residual 91 3.85E+09 42264567.1 Total 92 4.63E+09 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 38185.5979 3774.3766 10.117061 1.45E-16 30688.26252 45682.93 30688.26 45682.93 X...

80.2K

Verified Solution

Question

Statistics

SALARY EDUC EXPER TIME
39000 12 0 1
40200 10 44 7
42900 12 5 30
43800 8 6 7
43800 8 8 6
43800 12 0 7
43800 12 0 10
43800 12 5 6
44400 15 75 2
45000 8 52 3
45000 12 8 19
46200 12 52 3
48000 8 70 20
48000 12 6 23
48000 12 11 12
48000 12 11 17
48000 12 63 22
48000 12 144 24
48000 12 163 12
48000 12 228 26
48000 12 381 1
48000 16 214 15
49800 8 318 25
51000 8 96 33
51000 12 36 15
51000 12 59 14
51000 15 115 1
51000 15 165 4
51000 16 123 12
51600 12 18 12
52200 8 102 29
52200 12 127 29
52800 8 90 11
52800 8 190 1
52800 12 107 11
54000 8 173 34
54000 8 228 33
54000 12 26 11
54000 12 36 33
54000 12 38 22
54000 12 82 29
54000 12 169 27
54000 12 244 1
54000 15 24 13
54000 15 49 27
54000 15 51 21
54000 15 122 33
55200 12 97 17
55200 12 196 32
55800 12 133 30
56400 12 55 9
57000 12 90 23
57000 12 117 25
57000 15 51 17
57000 15 61 11
57000 15 241 34
60000 12 121 30
60000 15 79 13
61200 12 209 21
63000 12 87 33
63000 15 231 15
46200 12 12 22
50400 15 14 3
51000 12 180 15
51000 12 315 2
52200 12 29 14
54000 12 7 21
54000 12 38 11
54000 12 113 3
54000 15 18 8
54000 15 359 11
57000 15 36 5
60000 8 320 21
60000 12 24 2
60000 12 32 17
60000 12 49 8
60000 12 56 33
60000 12 252 11
60000 12 272 19
60000 15 25 13
60000 15 36 32
60000 15 56 12
60000 15 64 33
60000 15 108 16
60000 16 46 3
63000 15 72 17
66000 15 64 16
66000 15 84 33
66000 15 216 16
68400 15 42 7
69000 12 175 10
69000 15 132 24
81000 16 55
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.41198516
R Square 0.16973178
Adjusted R Square 0.16060795
Standard Error 6501.12045
Observations 93
ANOVA
df SS MS F Significance F
Regression 1 786253429 786253429 18.60313 4.08E-05
Residual 91 3.85E+09 42264567.1
Total 92 4.63E+09
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 38185.5979 3774.3766 10.117061 1.45E-16 30688.26252 45682.93 30688.26 45682.93
X Variable 1 1280.85932 296.96712 4.31313512 4.08E-05 690.9706164 1870.748 690.9706 1870.748
This data set was obtained by collecting information on arandomly selected sample of 93 employees working at a bank.
SALARY- starting annual salary at the time of hire
EDUCÂ Â - number of years of schooling at the time ofthe hire
EXPER - number of months of previous work experience at the timeof hire
TIMEÂ Â Â - number of months that the employee hasbeen working at the bank until now
2. Use the least squares method to fit a simple linear modelthat relates the salary (dependent variable) to education(independent variable).
a- What is your model? State the hypothesis that is to betested, the decision rule, the test statistic, and your decision,using a level of significance of 5%.
b â€“ What percentage of the variation in salary has beenexplained by the regression?
c â€“ Provide a 95% confidence interval estimate for the trueslope value.
d - Based on your model, what is the expected salary of a newhire with 12 years of education?
e â€“ What is the 95% prediction interval for the salary of a newhire with 12 years of education? Use the fact that thedistance value = 0.011286

Answer & Explanation Solved by verified expert

3.7 Ratings (668 Votes)

a The assumed underlying model is a simple linear modelLooking under the Coefficients column of the fitted modelare the estimated coefficientsSo the fitted model isHypothesis testing for the InterceptThe test statistic Under the Null hypothesis is tdistributed withn1 931 92 degrees of freedomHerePlugging inHence the The obtained teststatistic At level of significance 5 ie The critical teststatistc value See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

SALARY	EDUC	EXPER	TIME
39000	12	0	1
40200	10	44	7
42900	12	5	30
43800	8	6	7
43800	8	8	6
43800	12	0	7
43800	12	0	10
43800	12	5	6
44400	15	75	2
45000	8	52	3
45000	12	8	19
46200	12	52	3
48000	8	70	20
48000	12	6	23
48000	12	11	12
48000	12	11	17
48000	12	63	22
48000	12	144	24
48000	12	163	12
48000	12	228	26
48000	12	381	1
48000	16	214	15
49800	8	318	25
51000	8	96	33
51000	12	36	15
51000	12	59	14
51000	15	115	1
51000	15	165	4
51000	16	123	12
51600	12	18	12
52200	8	102	29
52200	12	127	29
52800	8	90	11
52800	8	190	1
52800	12	107	11
54000	8	173	34
54000	8	228	33
54000	12	26	11
54000	12	36	33
54000	12	38	22
54000	12	82	29
54000	12	169	27
54000	12	244	1
54000	15	24	13
54000	15	49	27
54000	15	51	21
54000	15	122	33
55200	12	97	17
55200	12	196	32
55800	12	133	30
56400	12	55	9
57000	12	90	23
57000	12	117	25
57000	15	51	17
57000	15	61	11
57000	15	241	34
60000	12	121	30
60000	15	79	13
61200	12	209	21
63000	12	87	33
63000	15	231	15
46200	12	12	22
50400	15	14	3
51000	12	180	15
51000	12	315	2
52200	12	29	14
54000	12	7	21
54000	12	38	11
54000	12	113	3
54000	15	18	8
54000	15	359	11
57000	15	36	5
60000	8	320	21
60000	12	24	2
60000	12	32	17
60000	12	49	8
60000	12	56	33
60000	12	252	11
60000	12	272	19
60000	15	25	13
60000	15	36	32
60000	15	56	12
60000	15	64	33
60000	15	108	16
60000	16	46	3
63000	15	72	17
66000	15	64	16
66000	15	84	33
66000	15	216	16
68400	15	42	7
69000	12	175	10
69000	15	132	24
81000	16	55

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.41198516
R Square	0.16973178
Adjusted R Square	0.16060795
Standard Error	6501.12045
Observations	93

ANOVA
	df	SS	MS	F	Significance F
Regression	1	786253429	786253429	18.60313	4.08E-05
Residual	91	3.85E+09	42264567.1
Total	92	4.63E+09

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	38185.5979	3774.3766	10.117061	1.45E-16	30688.26252	45682.93	30688.26	45682.93
X Variable 1	1280.85932	296.96712	4.31313512	4.08E-05	690.9706164	1870.748	690.9706	1870.748