Is There a Relationship Between the Raises Administrators at State $$E ( y ) = \beta _ { 0 } + \beta _ { 1 } x .$$

question 95

Multiple Choice

Is there a relationship between the raises administrators at State University receive and their performance on the job? 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 $$E ( y ) = \beta _ { 0 } + \beta _ { 1 } x .$$
Using the method of least squares, the faculty group obtained the following prediction equation:
$$\hat { y } = 14,000 - 2,000 x$$ Interpret the estimated slope of the line.

• A) For a 1-point increase in an administrator's rating, we estimate the administrator's raise to decrease $2,000.
• B) For a 1-point increase in an administrator's rating, we estimate the administrator's raise to increase $2,000.
• C) For an administrator with a rating of 1.0, we estimate his/her raise to be $2,000.
• D) For a $1 increase in an administrator's raise, we estimate the administrator's rating to decrease 2,000 points.

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Sound Wave

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