Question 2

The Human Resources Department of a reputed aged care facility in Sydney has provided the following information of its best performing 7 employees.

a. Develop a scatter diagram for the above data set and identify the possible association between variables.

b. Develop the estimated regression equation by computing the slope (b1) and the yintercept (b0).

c. What is the estimated salary of an employee who has 10 years of work experience in the above-aged care facility?

d. What is the expected annual salary increment if you are working in this aged care facility?

Work Experience (Years)     Annual Salary (in 10,000)

6                                                         5.1

5                                                         5.8

4                                                         6.6

8                                                         7.4

2                                                         5.5

3                                                         6.5

7                                                         6.8

Mean = 5 Mean = 6.2