If we wish to understand the relationship between years experience in a job and employee salary we might fit a regression model, y=b₀+b₁x, in which y is salary (in thousands), x is years experience, b₀ is the y-intercept (in other words, b₀ is estimated salary when x=0, or it is starting salary when an employee has no accrued experience), and b₁ is the amount we expect salaries to increase on average with each additional year of experience (ie annual raise). Suppose our b₀ and b₁ estimates are 30 and 2, respectively. 

Based on our model estimates, how much would we expect an employee to make, on average, in their 11th year of employment (ie x=11)? 

 

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Based on the given regression model with estimated coefficients the expected salary for an emp... View the full answer