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Mathematics, 22.02.2020 02:02 341404143
Is there a relationship between the raises administrators at State University receive and their performance on the job? A faculty group wants to determine whether job rating (x) is a useful linear predictor of raise (y). Consequently, the group considered the straight-line regression model
y ^= β0 +β1x.
Using the method of least squares, the faculty group obtained the following prediction equation:
y ^= 14,000 - 2,000x
Interpret the estimated y-intercept of the line.
A) For an administrator who receives a rating of zero, we estimate his or her raise to be $14,000.
B) For a 1-point increase in an administrator's rating, we estimate the administrator's raise to increase $14,000.
C) The base administrator raise at State University is $14,000.
D) There is no practical interpretation, since rating of 0 is nonsensical and outside the range of the sample data.
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