The HR Department of Vanderizing Bulb Company wanted to know if among its salaried employees there...

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The HR Department of Vanderizing Bulb Company wanted to know ifamong its salaried employees there was a relationship between yearsof school and annual compensation. A random sample of employeesyielded the following data:
Employee Years of School Compensation ($)
1 20 69,582
2 15 55,433
3 13 64,678
4 14 74,465
5 17 70,159
6 16 62,487
7 17 69,763
8 18 71,125
9 20 64,350
10 14 53,290
a. Find the correlation coefficient for the relationship betweenYears of School and Compensation.
b. Find the best equation which should be used to predictcompensation on the basis of years of schooling. Justify by a testof a hypothesis.
c. Maggie Radford has 15 years of schooling. What is herpredicted salary if she works at Vanderizing?

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Correlation coefficient for the relationship between Years of School and Compensation is calculated by the formula rxy covxy stdx stdy Covyears compensation 5643356 standard deviationyears 2458545 stdcompensation 6912532 rxy See Answer

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Employee	Years of School	Compensation ($)
1	20	69,582
2	15	55,433
3	13	64,678
4	14	74,465
5	17	70,159
6	16	62,487
7	17	69,763
8	18	71,125
9	20	64,350
10	14	53,290