The manager of human resource department wants to see if there is any relationship between staffs’ salary (in 1000TK) and their experience (in years).
The manager of human resource department wants to see if there is any
relationship between staffs’ salary (in 1000TK) and their experience (in years).
---------------------------+
| id salary experience |
|--------------------------|
| 1 15 15.5 |
| 2 18 17 |
| 3 16.5 17 |
| 4 16.3 18 |
| 5 22 19 |
|--------------------------|
| 6 19.9 18 |
| 7 24 20 |
| 8 18.5 18.5 |
| 9 28.3 22 |
| 10 17.5 19.5 |
|--------------------------|
| 11 24.5 19.5 |
| 12 16.2 17.5 |
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(a) Write down the regression model of salary on experience indicating dependent
variable, independent variables and the associated parameters.
(b) Obtain the least squares estimates of the model parameters and interpret them.
(c) Draw a scatter plot and the regression line in the same coordinate.
(d) Obtain TSS, RSS and ESS.
(e) Obtain R-square value and interpret the result.
(f) Obtain the estimate of the error variance.
(g) Obtain 95% confidence interval for slope and interpret it.
(h) Test the hypothesis that there is no linear relationship between salary and experience
(i) Write down the predicted model salary on experience. Obtain the predicted salary for
the employees whose have experience of 20 years. Interpret this.
(j) Using results in (j), obtain the 95% prediction interval for mean salary and individual
salary. Interpret them.
(k) What is the estimated diffference in mean salary between two employees whose
experience is differed by 6 years.
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