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

Question 33

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 ( yy ) . 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 yy -intercept of the line.


A) There is no practical interpretation, since rating of 0 is nonsensical and outside the range of the sample data.
B) For a 1-point increase in an administrator's rating, we estimate the administrator's raise to increase $14,000\$ 14,000 .
C) For an administrator who receives a rating of zero, we estimate his or her raise to be $14,000\$ 14,000 .
D) The base administrator raise at State University is $14,000\$ 14,000 .

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