Chapter 11, Problem 11.107ACB

Retaliation against company “whistle-blowers.” Individuals who report perceived wrongdoing of a corporation or public agency are known as whistleblowers. Two researchers developed an index to measure the extent of retaliation against a whistle-blower (Journal of Applied Psychology, 1986). The index was based on the number of forms of reprisal actually experienced, the number o f forms of reprisal threatened, and the number of people within the organization (e.g., co-workers or immediate supervisor) who retaliated against them. The table (next column) lists the retaliation index (higher numbers indicate more extensive retaliation) and salary for a sample of 15 whistle-blowers from federal agencies.

a Construct a scatterplot for the data Does it appear that the extent of retaliation increases decreases or stays the same with an increase in salary? Explain.

Retaliation Index	Salary
301	$62,000
550	36,500
755	21,600
327	$24,000
500	30,100
377	35,000
290	47,500
452	54,000
535	19,800
455	44.000
615	46,600
700	15,100
650	70,000
630	21,000
360	16,900

b. Use the method of least squares to fit a straight line to the data.

c. Graph the least squares line on your scatterplot. Does the least squares line support your answer to the question in part a? Explain.

d. Interpret the y-intercept, ${\hat{\beta }}_0$ of the least squares line in terms of this application. Is the interpretation meaningful?

e. Interpret the slope, ${\hat{\beta }}_1$, of the least squares line in terms of this application. Over what range of x is this interpretation meaningful?

f. Test the adequacy of the model using α = .05.