Interpreting Regression Data (Appendix): Staplehare Airport Authority needs to forecast its personnel department costs. The following output was obtained from a regression program used to estimate personnel department costs as a function of the number of airport employees:

Monthly data for the past two years were used to construct these estimates. Cost relationships are expected to be the same for the coming period.

Required:

a. What are the estimated personnel costs for 2.800 employees.

b. Construct a 95 percent confidence interval for this cost prediction. The standard error of estimate is $582.30. (Use / = 2.074).

c. Construct a 95 percent confidence interval for the slope coefficient. (Use t = 2.074.)

Equation: Personnel costs = $5,310+ $408 x Employees Statistical data: Correlation coefficient .923 R-squared 852 Adjusted R-square .834 Standard error of slope 34.250 t-statistic for slope 11.912