TABLE 14-2
A professor of industrial relations believes that an individual's wage rate at a factory (Y) depends on his performance rating (X₁) and the number of economics courses the employee successfully completed in college (X₂). The professor randomly selects 6 workers and collects the following information:
-Referring to Table 14-2, for these data, what is the estimated coefficient for performance rating, b₁?
A) 0.616
B) 1.054
C) 6.932
D) 9.103

Question

TABLE 14-2
A professor of industrial relations believes that an individual's wage rate at a factory (Y) depends on his performance rating (X₁) and the number of economics courses the employee successfully completed in college (X₂). The professor randomly selects 6 workers and collects the following information: 
-Referring to Table 14-2, for these data, what is the estimated coefficient for performance rating, b₁?
A) 0.616 
B) 1.054 
C) 6.932 
D) 9.103

Quizplus · Accepted Answer

Using the regression equation, Y = b₀ + b₁X₁ + b₂X₂, and substituting the given values, we obtain:
65 = b₀ + 0.616(50) + 1.0538(2)
73 = b₀ + 0.616(70) + 1.0538(4)
70 = b₀ + 0.616(60) + 1.0538(3)
80 = b₀ + 0.616(80) + 1.0538(5)
62 = b₀ + 0.616(40) + 1.0538(1)
77 = b₀ + 0.616(90) + 1.0538(4)
Using matrix algebra, we obtain b₁ = 1.054.

TABLE 14-2 A Professor of Industrial Relations Believes That an Individual's Wage