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Annual bonus and years of experience

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Reference no: EM132100601

The annual bonuses ($1,000s) of six employees with different years of experience were recorded as follows.  

Years of Experience x 1 2 3 4 5 6 

Annual bonus y 6 1 9 5 17 12 

a) Determine the line of best fit for the relationship between annual bonus and years of experience.

b) Interpret the intercept and slope coefficients for this model.

c) What is the percentage variation in annual bonus that is explained by years of experience?

d) What does the model predicts as a bonus of an employee that is 1.5 standard deviations more experienced than the average employee?

Reference no: EM132100601

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