Question

A faculty group wants to determine whether job rating (x) is a useful linear predictor of raise (y). Consequently, the group considered the straight line regression model E(y)- B^o + B^1x. Using th e method of least squares, the faculty group obtained the following prediction equation. Interpret the estimated slope of the line.^y=14,000-2,000x
A) For a $1 increase in an administrators raise, we estimate the administrators rating to decrease 2,000 points
B) For an administrator with a rating of 1.0, we estimate his/her raise to be $2,000.
C) For a 1-point increase in an administrators rating, we estimate the administrators raise to increase $2,000
D) For a 1-point increase in an administrators rating, we estimate the administrators raise to decrease $2,000

Answer 1

Answer:

The answer is "D".

Explanation:

Since the value of b1 is negative, the regression line decreases as b1 increases

For a 1-point increase in an administrators rating, we estimate the administrators raise to decrease $2,000.