The number of employees (X) and profits per employee (Y) for n = 16 publishing firms are given in Table P-19. Employees are recorded in thousands and profits per employee in thousands of dollars. A portion of the Minitab output from a straight-line regression analysis is given below.
The regression equation is
Profits = 18.0 - 0.271 Employees

a. Identify the least squares estimates of the slope and intercept coefficients.
b. Test the hypothesis H0: β1 = 0 with α = .10. Does there appear to be a relationship between profits per employee and number of employees? Explain.
c. Identify and interpret r2.
d. Is this fitted regression function likely to be a good tool for forecasting profits per employee for a given number of publishing firm employees? Discuss.

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Coef SE Coef Predictor Constant 17.954 4.457 4.03 0.001 Employees -0.2715 0.17261.57 0.138 S= 10.6112 R-Sq = 15.0% R-Sq(adj)= 9.096 TABLE P-19 Firm Profits ($1,000s) Employees (1,000s) 33.5 31.4 25.0 23.1 14.2 11.7 10.8 9.4 6.3 10.7 7.4 17.1 21.2 36.8 28.5 10.7 10 12* 14 9.8 9.1 8.5 8.3 4.8 3.2 2.7 -9.5 70.5 14.8 21.3 14.6 26.8