Ans Q 1) a) The intercept for the
regression is given as 239.16, which are we can interpret that the regression line intersects the y-axis
at the point 239.16. b) For the given
regression line, the coefficient of age is 5.20 and it is interpreted as the
slope of the given regression line. This indicates that, when the age increases by one year, then the weekly earnings increases by 5.20 units. c) The weekly average is
calculated as y = 239.16+5.20(37.5) = 434.16. d) Degrees of freedom = (n-2)
=1742 ; Critical value = 1.961327 using
excel formula (=TINV) Margin of Error =CV* SER =
563.3126 t = 5.20/278.27 = 0.018687 Confidence interval is given as
below: CI = (slope -/+ margin of error) Margin of error = critical value *
standard error = 1.96*278.27 = 563.126 Lower limit for confidence interval =
slope – margin of error Upper limit for confidence interval =
slope + margin of error Confidence interval = (lower limit, upper limit) Confidence interval = ( -558.11, 568.51 ) e ) 239.16 + 5.20 (45)
= 473.16 There
is a greater difference in actual earning estimated earnings. f ) Very less variation in the
independent variable (X) is explained by dependent variable (y) ——————————————————————————————————————————————————————————- Ans Q 2) Correlation is a statistical measure that describes the size and direction of a
relationship between two or more variables