A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates the model: Salary = β₀ +β₁ Advertising + ε.The following ANOVA table below shows a portion of the regression results. Which of the following is the monthly salary of an employee that has worked for 48 months at the bank? A) $441. B) $785. C) $1,050. D) $1,226.

Question

Quizplus · Accepted Answer

Since the regression equation given is Salary = β₀ +β₁ Advertising + ε, we can use the coefficients from the ANOVA table to calculate the predicted salary for an employee with 48 months of service. From the table, we see that the coefficient for the constant term (β₀) is 441. This means that if an employee has zero months of service, their predicted salary would be $441. The coefficient for the length of service term (β₁) is 17.5. This means that for every additional month of service, an employee is predicted to earn an additional $17.5 in salary. Therefore, for an employee with 48 months of service, the predicted salary is: Salary = 441 + (17.5 * 48) = $1226. So the answer is D.

A Manager at a Local Bank Analyzed the Relationship Between