Question: PROBLEM 9: CORRELATION AND REGRESSION ANALYSIS The following table shows the Salaries ( in dollars ) at a certain corporation vs. Years of Experience. Salaries

PROBLEM 9: CORRELATION AND REGRESSION ANALYSIS

The following table shows the Salaries (in dollars) at a certain corporation vs. Years of Experience. Salaries vs. Years of Experience Case Number Years of Experience Salaries (in $) 1 1.2 39344 2 1.4 46206 3 1.6 37732 4 2.1 43526 5 2.3 39892 6 3 56643 7 3.1 60151 8 3.3 54446 9 3.3 64446 10 3.8 57190 11 4 63219 12 4.1 55795 13 4.1 56958 14 4.2 57082 15 4.6 61112 16 5 67939 17 5.2 66030 18 5.4 83089 19 6 81364 20 6.1 93941 21 6.9 91739 22 7.2 98274 23 8 101303 24 8.3 113813 25 8.8 109432

Q1. Construct a scatter plot between Salaries and Years of Experience? Interpret the plot?

Q2. Determine the correlation coefficient between Salaries and Years of Experience? Comment on its value?

Q3. Test the statistical significance of the correlation coefficient in Q2, using = 0.05?

Q4. Find the equation of the regression line between Salaries and Years of Experience? Interpret the coefficient associated with Years of Experience?

Q5. Use the equation of the regression line in Q4 to predict the salary of a person who has 5 Years of Experience? Elaborate!

Q6. Determine the coefficient of determination? Comment on its value?

Q7. Determine the standard error of estimate? Comment on its value?

Q8. Find the 95% prediction interval of Salaries for persons who have 5 Years of Experience?

Q9. In your opinion, could one use the developed regression line to predict salaries? If so, why?

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