SCENARIO 14-2
A professor of industrial relations believes that an individual's wage rate at a factory (Y)depends on his performance rating (X 1 )and the number of economics courses the employee successfully completed in college (X 2 ).The professor randomly selects 6 workers and collects the following information:

-Referring to Scenario 14-2,suppose an employee had never taken an economics course and managed to score a 5 on his performance rating.What is his estimated expected wage rate?
A)10.90
B)12.20
C)17.23
D)25.11

Question

SCENARIO 14-2
A professor of industrial relations believes that an individual's wage rate at a factory (Y)depends on his performance rating (X 1 )and the number of economics courses the employee successfully completed in college (X 2 ).The professor randomly selects 6 workers and collects the following information:
 
-Referring to Scenario 14-2,suppose an employee had never taken an economics course and managed to score a 5 on his performance rating.What is his estimated expected wage rate?
A)10.90 
B)12.20 
C)17.23 
D)25.11

Quizplus · Accepted Answer

From the regression equation Y = 7.43 + 3.77X₁ + 4.02X₂, when X₂ = 0 and X₁ = 5, we have, Y = 7.43 + 3.77(5) + 4.02(0) = 12.20

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