Question

1. A regression analysis has been conducted between the annual income (in 1000 euros) and the work experience (in years) of people with 0.05 significance level. The results are summarized below.

1. Define the independent and dependent variables. What can you say about the correlation between them.
2. Interpret R Square.
3. Write the regression model and interpret the coefficients.
4. Estimate the average annual income of a person who has 15 years of work experience.

Summary
Table 1.
Regression Statistics
Multiple R	0,93
R Square	0,86
Adjusted R Square	0,82
Standard Error	2,11
Observations	6
Table 2.
	df	SS	MS	F	Significance F
Regression	1	107,603	107,603	24,276	0,008
Residual	4	17,730	4,432
Total	5	125,333
Table 3.
	Coefficients	Standard Error	t stat	p value	Lower 95%	Upper 95%
Intercept	17,351	3,160	5,491	0,005	8,577	26,124
Variable X 1	1,362	0,276	4,927	0,008	0,595	2,130

Answer 1