After estimating a regression of each employee's number of contracts sold and their tenure (in number of years) at the company as follows: Contracts = 30.5 + 4.5 Tenure. You are willing to believe you have a random sample of employees, and a sufficiently large sample size. Given these results, is it appropriate to make the following claim, "Our more tenured employees at the company on average get awarded more contracts"?
A) No, this is an active prediction.
B) Yes, you're making a passive prediction.
C) Yes, you're making an active prediction.
D) No, you're making a passive prediction.

Question

Quizplus · Accepted Answer

The regression equation suggests that for each additional year of tenure, an employee sells an average of 4.5 more contracts. This supports the claim that more tenured employees, on average, get awarded more contracts, making it a passive prediction based on observed data.

After Estimating a Regression of Each Employee's Number of Contracts