Suppose that the following linear regression equation represents the annual salary (in thousands
of dollars per year) in terms of years of experience in a particular profession.

̂salary = 43.5 + 0.73 ·years.

a) What does the the number 43.5 represent in this equation?

b) What does the the number 0.73 represent in this equation?

c) If a friend of yours has been in this profession for 12 years, what does this model predict about your friend's salary?

d) If your friend actually makes $50,000 per year, what is the residual of that data point?

Answer rating: 100% (QA)

SOLUTION a The number 435 in this linear regression equation represents the intercept term or the constant term It is the predicted value of the dependent variable in this case salary when the indepen... View the full answer