Question

Annual income of staff of DebMarine (in thousands of dollars) and years their years of experience. A
random sample of DebMarine staff Annual income and years of experience are as follows.
Years of education (x) 3 3 5 7 5 10 7 15 7 10 5 15 5
Annual Income (000s) (y) 17 15 20 30 23 40 27 45 31 43 27 50 25
a. Which variable is the dependent variable? [2]
b. Determine the least squares estimated regression line. [6]
c. Predict the annual income of a salesperson with one year of college. [3]
d. Compute SSE, SST, and SSR. [6]
e. Calculate the coefficient of determination. [2]
f. Interpret the results in coefficient of determination. [2]
g Calculate the sample correlation coefficient between income and years of college. [2]
h Interpret the results in correlation coefficient. [

Answer 1

a. Which variable is the dependent variable?

here education(x) is independent variable and income(y) is dependant variable

b. Determine the least squares estimated regression line.

y= 10.346 +2.665*x

we have used R software for the answer

c. Predict the annual income of a salesperson with one year of college

so we will put x=1

hence y=10.364+2.665=13.029

d. Compute SSE, SST, and SSR.

Analysis of Variance

Source DF SS MS F P
Regression 1 1358.1 1358.1 122.23 0.000
Residual Error 11 122.2 11.1
Total 12 1480.3

so SST=1480.3

SSE=112.2

SSR=1358.1