The Bureau of Personnel needs to predict how many employees will retire next month. Based on a sample of 35 past months, the bureau has run a regression using the number of employees older than age 60 as the independent variable and the number of retirements as the dependent variable. The bureau calculates the following regression:
= .21 + .04X
r2 = .35 Sy|x = 4.5 sb = .006 X = 540 sx = 90
Interpret the slope, intercept, and coefficient of determination, and test the slope for significance. What is your best estimate of the number of retirements next month if there are 620 employees older than 60? Could this number be as high as 30?