We assume that our wages will increase as we gain experience and become more valuable to...

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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

Answer & Explanation Solved by verified expert
4.4 Ratings (930 Votes)
a The scatter plot of wages versus LOS is b The least square line isTo    See Answer
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