We assume that our wages will increase as we gain experience andbecome more valuable to our employers. Wages also increase becauseof inflation. By examining a sample of employees at a given pointin time, we can look at part of the picture. How does length ofservice (LOS) relate to wages? The data here (data9.dat) is the LOSin months and wages for 60 women who work in Indiana banks. Wagesare yearly total income divided by the number of weeks worked. Wehave multiplied wages by a constant for reasons ofconfidentiality.
(a) Plot wages versus LOS. Consider the relationship and whetheror not linear regression might be appropriate.
(b) Find the least-squares line. Summarize the significance testfor the slope. What do you conclude?
| Wages = _______ | + _______ LOS |
| t = _______ | |
| P = _______ | |
(c) State carefully what the slope tells you about the relationshipbetween wages and length of service.
(d) Give a 95% confidence interval for the slope.
(_______ ,_______ )
worker wages los size1 51.7094 69 Large2 71.0128 60 Small3 70.07 202 Small4 49.9388 89 Small5 51.4523 81 Large6 61.5483 94 Small7 45.4168 55 Large8 53.4017 88 Large9 42.3147 155 Large10 46.2871 86 Small11 63.229 112 Large12 57.062 72 Small13 45.8663 32 Small14 42.0388 35 Large15 43.3518 57 Large16 54.3362 39 Large17 62.1635 47 Large18 42.8431 89 Small19 68.4515 42 Large20 44.4342 65 Large21 43.6074 62 Large22 40.2586 28 Small23 58.7744 75 Large24 51.7969 67 Small25 73.4367 168 Large26 46.8493 86 Small27 49.9769 44 Small28 44.8422 93 Large29 44.7397 113 Large30 51.0961 25 Large31 76.9333 118 Small32 49.2112 109 Large33 49.1286 43 Large34 56.6601 74 Small35 59.466 85 Large36 37.9853 146 Large37 39.2893 88 Large38 37.1191 81 Small39 53.4795 57 Large40 68.418 88 Small41 55.6763 45 Small42 60.8119 73 Small43 61.1519 113 Large44 52.1887 47 Small45 64.3686 33 Large46 77.7875 188 Small47 98.2949 75 Large48 70.8228 81 Large49 48.0061 70 Small50 44.3186 22 Large51 55.4166 59 Large52 47.1434 58 Large53 49.7145 78 Large54 59.1692 57 Small55 48.7496 45 Small56 61.6285 71 Large57 73.1227 26 Small58 44.0953 65 Large59 51.2836 30 Small60 37.4581 55 Large
