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Is There a Relationship Between the Raises Administrators at State (x)( x )

Question 31

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) ( x ) is a useful linear predictor of raise (y) ( y ) . Consequently, the group considered the straight-line regression model
E(y) =β0+β1x.E ( y ) = \beta _ { 0 } + \beta _ { 1 } x .
Using the method of least squares, the faculty group obtained the following prediction equation:
y^=14,0002,000x\hat { y } = 14,000 - 2,000 x
Interpret the estimated slope of the line.


A) For a $1\$ 1 increase in an administrator's raise, we estimate the administrator's rating to decrease 2,000 points.
B) For a 1-point increase in an administrator's rating, we estimate the administrator's raise to decrease $2,000\$ 2,000 .
C) For an administrator with a rating of 1.0, we estimate his/her raise to be $2,000\$ 2,000 .
D) For a 1-point increase in an administrator's rating, we estimate the administrator's raise to increase $2,000\$ 2,000 .

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