Question

Sixty CEOs between the ages of 32 and 74 were asked their salary (in thousands). The results of a statistical analysis are shown below: Simple linear regression results: Dependent Variable: SALARY Independent Variable: AGE SALARY = 250.00 + 4.00 AGE Sample size: 59 SSR = 45,000 SSE = 55,000 a. Compute the coefficient of determination. b. Suppose that r= 0.67. Interpret this outcome. c. Is age a good predictor of salary? Explain. d. Suppose a CEO is 57 years old. What do you predict his/her salary to be? e. Suppose you wanted to predict the salary of the CEO of Facebook, Mark Zuckerberg, based on the information here. How well do you think your prediction would be assuming Mr. Zuckerberg was 23 when he started Facebook and became CEO?

Answer 1