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In the following regression, X = weekly pay, Y = income tax withheld, and n = 35 McDonald's employees. (a) Write the fitted regression equation. (b) State the degrees of freedom for a two tailed test for zero slope, and use Appendix D to find the critical value at α = .05. (c) What is your conclusion about the slope? (d) Interpret the 95 percent confidence limits for the slope. (e) Verify that F = t2 for the slope. (f) In your own words, describe the fit of this regression.
R2 0.202
Std. Error 6.816
n 35
ANOVA table
Source SS df MS F p-value
Regression 387.6959 1 387.6959 8.35 .0068
Residual 1,533.0614 33 46.4564
Total 1,920.7573 34
Regression output confidence interval
variables coefficients std.error t (df = 33) p-value 95% lower 95% upper
Intercept 30.7963 6.4078 4.806 .0000 17.7595 43.8331
Slope 0.0343 0.0119 2.889 .0068 0.0101 0.0584
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