Interpret a Linear Regression Equation and Use It to Make

question 7

Multiple Choice

Interpret a linear regression equation and use it to make a prediction.
-A company studying the productivity of its employees on a new information system
Was interested in determining if the age (X) of data entry operators influenced the number
Of completed entries made per hour (Y) . The regression equation is yˆ = 14.374 − 0.145x .
Suppose the actual completed entries per hour for an operator who is 35 years old was 8.
The residual is

• A) -1.3
• B) 2.6
• C) -3.5
• D) 1.3
• E) -2.2

---

Definitions:

Run Out Of Oil

A hypothetical scenario in which the world's reserves of petroleum are depleted, leading to potential energy crises.

Natural Resource Economics

A branch of economics that studies the optimal use and management of natural resources.

Harvesting

The process of gathering ripe crops from the fields, or in a broader business context, the act of capturing value from a business initiative or venture once it has matured.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size and growth.