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.

---

Definitions:

Similar Needs

Requirements or desires that are closely aligned or identical among a group of consumers or businesses, often targeted by marketers with specific products or services.

Similar Features

Aspects or characteristics that two or more items have in common, allowing them to be compared or associated with one another.

Global Consumers

Individuals around the world who purchase goods and services from international markets.

Similar Needs

The shared or common requirements or desires of a defined group of consumers that a company targets with its products or services.