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For the data in given Exercise, find the standard error of estimate, then construct the 95% prediction interval for the amount of stock owned by an individual employee who has been with the firm for 5 years.
Exercise For a sample of 8 employees, a personnel director has collected the following data on ownership of company stock versus years with the firm.
X = years
Y = shares
6
300
12
408
14
560
252
9
288
13
650
15
630
522
a. Determine the least-squares regression line and interpret its slope.
b. For an employee who has been with the firm 10 years, what is the predicted number of shares of stock owned?
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The manager requires the estimate to be within 1.0 minutes of the population value. What sample size is needed?
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