HomeworkLib
Question

Regression Model (Statistics)

The CFO of the company would like to use the number of years employees have been with the company to predict the employees’ salaries. To that end, the CFO decided to fit the linear regression model E(y) = β0 + β1x, where Y = the salary of an employee (in thousands of dollars) and X = the years employed with the company. Using data collected for a sample of n = 35 employees of the company, the following result was obtained.

Ŷ= 14.20 +   2.39x    

What are the properties of the least-squares line, Ŷ = 14.20 + 2.39x?


A.    The average error of prediction is 0 and SSE is minimum.    

B.    It will always be a statistically useful predictor of y.    

C.    It is normal, mean 0, constant variance and independent.    

D.    All 35 of the sample y-values fall on the line.    


Linear-Regression-Model   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The linear equation is given below.


Y = 14.20 + 2.39x


Therefore, the nature of the linear equation here is 

A.    The average error of prediction is 0 and SSE is minimum.    


answered by: mujii
1 0
Add a comment
Know the answer?
Add Answer to:
Regression Model (Statistics)
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A county real estate appraiser wants to develop a statistical model to predict the appraised value...

    A county real estate appraiser wants to develop a statistical model to predict the appraised value of houses in a section of the county called East Meadow. One of the many variables thought to be an important predictor of appraised value is the number of rooms in the house.​ Consequently, the appraiser decided to fit the simple linear regression​ model, y=β0+β1x, where y=appraised value of the house​ (in $thousands) and x=number of rooms. Using data collected for a sample of...

  • A county real estate appraiser wants to develop a statistical model to predict the appraised value...

    A county real estate appraiser wants to develop a statistical model to predict the appraised value of houses in a section of the county called East Meadow. One of the many variables thought to be an important predictor of appraised value is the number of rooms in the house. Consequently, the appraiser decided to fit the linear regression model: E(y) = β0 + β1x, where y = appraised value of the house (in thousands of dollars) and x = number...

  • (Do this problem without using R) Consider the simple linear regression model y =β0 + β1x...

    (Do this problem without using R) Consider the simple linear regression model y =β0 + β1x + ε, where the errors are independent and normally distributed, with mean zero and constant variance σ2. Suppose we observe 4 observations x = (1, 1, −1, −1) and y = (5, 3, 4, 0). (a) Fit the simple linear regression model to this data and report the fitted regression line. (b) Carry out a test of hypotheses using α = 0.05 to determine...

  • please help with the attachment X 12 6/2014 55 35 45 10 15 The estimated regression...

    please help with the attachment X 12 6/2014 55 35 45 10 15 The estimated regression equation for these data is 9 - 62.25 -2.75x (a) Compute SSE, SST, and SSR using equations SSE 1-9), SST - DIY, -77%, and SSR-319,-7). SSE - SST - SSR- (b) Compute the coefficient of determination (Round your answer to three decimal places.) Comment on the goodness of fit. (For purposes of this exercise, consider a proportion large if it is at least 0.55.)...

  • The following data show the brand, price ($), and the overall score for six stereo headphones...

    The following data show the brand, price ($), and the overall score for six stereo headphones that were tested by a certain magazine. The overall score is based on sound quality and effectiveness of ambient noise reduction. Scores range from 0 (lowest) to 100 (highest). The estimated regression equation for these data is ŷ = 20.455 + 0.335x, where x = price ($) and y = overall score. Brand Price ($) Score A 180 78 B 150 69 C 95...

  • The following data show the brand, price ($), and the overall score for six stereo headphones...

    The following data show the brand, price ($), and the overall score for six stereo headphones that were tested by a certain magazine. The overall score is based on sound quality and effectiveness of ambient noise reduction. Scores range from 0 (lowest) to 100 (highest). The estimated regression equation for these data is ŷ = 23.064 + 0.309x, where x = price ($) and y = overall score. Brand Price ($) Score A 180 74 B 150 69 C 95...

  • A sales manager collected the following data on x = years of experience and y =...

    A sales manager collected the following data on x = years of experience and y = annual sales ($1,000s). The estimated regression equation for these data is ŷ = 80 + 4x. Salesperson Years of Experience Annual Sales ($1,000s) 1 1 80 2 3 97 3 4 97 4 4 102 5 6 103 6 8 101 7 10 119 8 10 118 9 11 127 10 13 136 (a) Compute SST, SSR, and SSE. SST= SSR= SSE= (b) Compute...

  • Question 12 6 pts Based on a sample of 65 observations, a least-squares regression line is...

    Question 12 6 pts Based on a sample of 65 observations, a least-squares regression line is obtained as follows: ŷ = 8.14 + 1.27x In addition, the result shows that the coefficient of determination is 0.717 and the standard error of regression is 19.25. Find the following statistics associated with a 95% confidence interval for the response variable (use an approximation formula if needed): 1. The critical value < [Choose ] 2. The standard error of fit [Choose] < 3....

  • a. Fit a simple linear regression model relating number (y) of software millionaire birthdays in a...

    a. Fit a simple linear regression model relating number (y) of software millionaire birthdays in a decade to total number (x) of births in this country. Give the least squares prediction equation. b. Practically interpret the estimated y-intercept and slope of the model, part a. c. Predict the number of software millionaire birthdays that will occur in a decade where the total number of births in this country is 26 million. d. Fit a simple linear regression model relating number...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT