Part A-Earnings vs. Hours Worked The table to the right lists the average number of hours...

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Part A-Earnings vs. Hours Worked The table to the right lists the average number of hours worked in a week and the average weekly earnings for U.S. production workers from 1967 to 1996. (The World Almanac 1998) 1. Construct a scatter diagram and comment on the relationship, if any, between these two variables. 2. Determine and interpret the correlation for hours worked and weekly earnings. Based upon the value of the correlation coefficient, is your answer to the previous question reasonable? 1976 36.1 3. What is a linear regression model for this data? Based upon the data given, estimate the average weekly earnings for a workweek of 33.8 hours. How reasonable and reliable are your estimate? Explain your answer. 4. Increase/decrease in weekly hours: a. For a production worker who wishes to increase weekly earnings, would you recommend a decrease in hours worked per week? Why or why not? Year Weekly Weekly Hours Earnings 1967 38 $101.84 1968 37.8 $107.73 1969 37.7 $114.61 1970 37.1 $119.83 1971 36.9 $127.31 1972 37 $136.90 1973 36.9 $145.39 1974 36.5 $154.76 1975 36.1 $163.53 $174.45 1977 36 $189.00 1978 35.8 $203.70 1979 35.7 $219.91 1980 35.3 $235.10 1981 35.2 $255.20 1982 34.8 $267.26 1983 35 $280.70 1984 35.2 $292.86 1985 34.9 $299.09 1986 34.8 $304.85 1987 34.8 $312.50 b. Does a decrease in hours worked cause an increase in weekly pay? 1988 34.7 $322.02 1989 34.6 $334.24 1990 34.5 $345.35 c. What other variables could contribute to an increase in weekly pay? 1991 34.3 $353.98 1992 34.4 $363.61 1993 34.5 $373.64 1994 34.7 $385.86 1995 34.5 $394.34 1996 34.4 $406.26 Part A-Earnings vs. Hours Worked The table to the right lists the average number of hours worked in a week and the average weekly earnings for U.S. production workers from 1967 to 1996. (The World Almanac 1998) 1. Construct a scatter diagram and comment on the relationship, if any, between these two variables. 2. Determine and interpret the correlation for hours worked and weekly earnings. Based upon the value of the correlation coefficient, is your answer to the previous question reasonable? 1976 36.1 3. What is a linear regression model for this data? Based upon the data given, estimate the average weekly earnings for a workweek of 33.8 hours. How reasonable and reliable are your estimate? Explain your answer. 4. Increase/decrease in weekly hours: a. For a production worker who wishes to increase weekly earnings, would you recommend a decrease in hours worked per week? Why or why not? Year Weekly Weekly Hours Earnings 1967 38 $101.84 1968 37.8 $107.73 1969 37.7 $114.61 1970 37.1 $119.83 1971 36.9 $127.31 1972 37 $136.90 1973 36.9 $145.39 1974 36.5 $154.76 1975 36.1 $163.53 $174.45 1977 36 $189.00 1978 35.8 $203.70 1979 35.7 $219.91 1980 35.3 $235.10 1981 35.2 $255.20 1982 34.8 $267.26 1983 35 $280.70 1984 35.2 $292.86 1985 34.9 $299.09 1986 34.8 $304.85 1987 34.8 $312.50 b. Does a decrease in hours worked cause an increase in weekly pay? 1988 34.7 $322.02 1989 34.6 $334.24 1990 34.5 $345.35 c. What other variables could contribute to an increase in weekly pay? 1991 34.3 $353.98 1992 34.4 $363.61 1993 34.5 $373.64 1994 34.7 $385.86 1995 34.5 $394.34 1996 34.4 $406.26