In an attempt to estimate executive salaries, a company observed the salaries and the years of...

 

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In an attempt to estimate executive salaries, a company observed the salaries and the years of experience for a sample of 50 executives. After a complete analysis of the data it was found that the error variance was not constant. To solve the problem, it was decided to use a multiplicative model to estimate the salaries based on years of experience. The resulting model was of the form In(y) Bo + Bixi + ε. and the following results was obtained in matrix notation. (X'X)= (X'y) = 50 906 906 19304 537.34631 9881.01553 y'y=5783.173014 Use the results obtained to answer the following questions: a.) Determine the least squares regression equation. Interpret the value of ₁. b.) c.) Determine SSE, S² and S. Interpret the value of S. Find a 95% confidence interval for B₁. d.) e.) Estimate the expected salary of an executive with 32 years of experience. In an attempt to estimate executive salaries, a company observed the salaries and the years of experience for a sample of 50 executives. After a complete analysis of the data it was found that the error variance was not constant. To solve the problem, it was decided to use a multiplicative model to estimate the salaries based on years of experience. The resulting model was of the form In(y) Bo + Bixi + ε. and the following results was obtained in matrix notation. (X'X)= (X'y) = 50 906 906 19304 537.34631 9881.01553 y'y=5783.173014 Use the results obtained to answer the following questions: a.) Determine the least squares regression equation. Interpret the value of ₁. b.) c.) Determine SSE, S² and S. Interpret the value of S. Find a 95% confidence interval for B₁. d.) e.) Estimate the expected salary of an executive with 32 years of experience.

Answer rating: 100% (QA)

a This can be found by using the formula y b0 b1x e where b0 is the intercept b1 is the slope x is t... View the full answer