Consider the data on salary (in $) and work experience (in years) of 100 employees in a marketing firm Estimate the model y 0 1 x , where y is salary and x is work experience a Explain why you would be concerned about changing variability in this application b Use a residual plot to confirm your ec...

a Since the salary to the employee tends to vary as heshe grows older the sa ...

Consider the data on salary (in $) and work experience (in years) of 100 employees in a

Question:

Consider the data on salary (in $) and work experience (in years) of 100 employees in a marketing firm. Estimate the model y = β0 + β1 x + ε, where y is salary and x is work experience.
a. Explain why you would be concerned about changing variability in this application.
b. Use a residual plot to confirm your economic intuition.