Question

A professor of industrial relations believes that an individual's wage rate at a factory (Y) depends on his performance rating (X1) and the number of economics courses the employee successfully completed in college (X2). The professor randomly selects 6 workers and collects the following information: X1 X2 Employee 1. Y ($) 10 _30 2 - 12 اس ادامه 4 15 17 20 Coo- 7 25 10 Referring to Table 14-2, suppose an employee had never taken an economics course and managed to score a 5 on his performance rating. What is his estimated expected wage rate? O 17.23 O 12.20 0 25.11 O 10.90

Answer 1

The statistical software output for regression equation is:

Multiple linear regression results: Dependent Variable: Y Independent Variable(s): X1, X2 Y = 6.9319023 + 1.0543526 X1 + 0.61601707 X2 Parameter estimates: Parameter. Estimate • Std. Err. . Alternative. DF T-Stat. Intercept 6.9319023 1.5548583 0 3 4.4582213 1.0543526 0.24588628 0 3 4.2879683 0.61601707 0.17373708 0 3 3.5456856 P-value 0.021 0.0233 0.0382

Hence,

Regression equation is:

Y = 6.9319023 + 1.0543526 X1 + 0.61601707 X2

For X1 = 5 and X2 = 0:

Y = 6.9319023 + 1.0543526* 5 + 0.61601707*0

Y = 12.20

Option B is correct.